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SF 3605

as introduced - 91st Legislature (2019 - 2020) Posted on 03/05/2020 04:07pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; increasing the minimum biofuel content in gasoline to 15
percent; requiring fuel retailers to offer blends of ten percent biofuel for use by
certain motorists; modifying certain dates; amending Minnesota Statutes 2018,
section 239.791.

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

Section 1.

Minnesota Statutes 2018, section 239.791, is amended to read:


239.791 OXYGENATED GASOLINE.

Subdivision 1.

Minimum biofuel deleted text begincontent requireddeleted text endnew text begin standardnew text end.

(a) Except as provided
in subdivisions 10 to deleted text begin14deleted text endnew text begin 17new text end, a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota deleted text beginmust containdeleted text endnew text begin containsnew text end at least the quantity of biofuel
required by clause (1) or (2), at the option of the person responsible for the product:

(1) the greater of:

(i) deleted text begin10.0deleted text endnew text begin 15.0new text end percent conventional biofuel by volume; or

(ii) the maximum percent of conventional biofuel by volume authorized in a waiver
granted by the United States Environmental Protection Agencynew text begin under United States Code,
title 42, section 7545
new text end; or

(2) deleted text begin10.0deleted text endnew text begin 15.0new text end percent of a biofuel, other than a conventional biofuel, by volume authorized
in a waiver granted by the United States Environmental Protection Agency or a biofuel
formulation registered by the United States Environmental Protection Agency under United
States Code, title 42, section 7545.

(b) deleted text beginFor purposes of enforcing the requirement of paragraph (a), clause (1), item (i),deleted text end A
gasoline/biofuel blend will be construed to be in compliance new text beginwith paragraph (a), clause (1),
item (i), or clause (2)
new text endif the biofuel content, exclusive of denaturants and other permitted
components, comprises not less than deleted text begin9.2deleted text endnew text begin 13.8new text end percent by volume and not more than deleted text begin10.0deleted text endnew text begin
15.0
new text end percent by volume of the blend as determined by an appropriate United States
Environmental Protection Agency or American Society of Testing Materials standard method
of analysis.

(c) deleted text beginThe aggregatedeleted text endnew text begin Of the totalnew text end amount of biofuel blended pursuant to this subdivision
deleted text begin may be any biofuel; howeverdeleted text endnew text begin each yearnew text end, conventional biofuel must comprise no less than
the portion specified on and after the specified dates:

(1)
July 1, deleted text begin2013deleted text endnew text begin 2020
new text end
90 percent
(2)
January 1, deleted text begin2015deleted text endnew text begin 2022
new text end
80 percent
(3)
January 1, deleted text begin2017deleted text endnew text begin 2024
new text end
70 percent
(4)
January 1, deleted text begin2020deleted text endnew text begin 2027
new text end
60 percent
(5)
January 1, deleted text begin2025deleted text endnew text begin 2032
new text end
no minimum

Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted by
the United States Environmental Protection Agency under United States Code, title 42,
section 7545, may alter the minimum content level required by subdivision 1, paragraph
(a), clause (1), item (ii), the waiver mustdeleted text begin:
deleted text end

deleted text begin (1) apply to all gasoline-powered motor vehicles irrespective of model year; and
deleted text end

deleted text begin (2)deleted text end allow for special regulatory treatment of Reid vapor pressure under Code of Federal
Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and deleted text beginethanoldeleted text endnew text begin
conventional biofuel
new text end up to the maximum percent of denatured deleted text beginethanoldeleted text endnew text begin conventional biofuelnew text end
by volume authorized under the waiver.

(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause (1), item
(ii), shall, upon the grant of the federal waiver, be effective the day after the commissioner
of commerce publishes notice in the State Register. In making this determination, the
commissioner shall consider the amount of time required by refiners, retailers, pipeline and
distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the
operational and logistical changes required to supply fuel in compliance with the minimum
biofuel requirement.

Subd. 2b.

Limited liability waiver.

No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to the
requirements of subdivision 1deleted text begin, paragraph (a), clause (1), item (ii),deleted text end under any theory of
liability except for simple or willful negligence or fraud. This subdivision does not preclude
an action for negligent, fraudulent, or willful acts. This subdivision does not affect a person
whose liability arises under chapter 115, water pollution control; 115A, waste management;
115B, environmental response and liability; 115C, leaking underground storage tanks; or
299J, pipeline safety; under public nuisance law for damage to the environment or the public
health; under any other environmental or public health law; or under any environmental or
public health ordinance or program of a municipality as defined in section 466.01.

Subd. 2c.

Fuel dispensing equipment; blends over ten percent deleted text beginethanoldeleted text endnew text begin
biofuel
new text end.

Notwithstanding any other law or rule, fuel dispensing equipment authorized to
dispense deleted text beginfuel under subdivision 1, paragraph (a), clause (1),deleted text end new text begingasoline/biofuel blends
containing up to ten percent biofuel
new text endis authorized to dispense fuel under subdivision 1deleted text begin,
paragraph (a), clause (2), or subdivision 1a
deleted text end.

Subd. 3.

Blending restriction.

When gasoline contains an oxygenate, a person responsible
for the product shall not blend the product with deleted text beginethanoldeleted text endnew text begin biofuelnew text end or with any other oxygenate
after it is transferred or otherwise removed from a refinery or terminal.

Subd. 7.

deleted text beginEthanoldeleted text endnew text begin Biofuelnew text end records; state audit.

The director shall audit the records of
registered deleted text beginethanoldeleted text endnew text begin biofuelnew text end blenders to ensure that each blender has met all requirements in
this chapter. Specific information or data relating to sales figures or to processes or methods
of production unique to the blender or that would tend to adversely affect the competitive
position of the blender must be only for the confidential use of the director, unless otherwise
specifically authorized by the registered blender.

Subd. 8.

Disclosure.

(a) A 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 deleted text beginsold or
transferred after September 30, 1997
deleted text end, 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.

(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
must state the volume percentage of biofuel blended into gasoline delivered through a meter
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to deleted text begin14deleted text endnew text begin
16
new text end.

Subd. 10.

Exemption for airport.

A person responsible for the product may offer for
sale, sell, or dispense at an airport, for use in airplanes, gasoline that is not oxygenated in
accordance with subdivision 1 if the gasoline is unleaded premium grade as defined in
section 239.751, subdivision 4.

Subd. 10a.

Exemption for resorts, marinas, and houseboat rental companies.

A
person responsible for the product may offer for sale, sell, or dispense at a resort, marina,
or houseboat rental company gasoline that is not oxygenated in accordance with subdivision
1 if the gasoline has an octane rating of 87 or higher; is delivered into onsite bulk storage;
and is not used for a licensed motor vehicle as defined in section 168.002, subdivision 18.

Subd. 11.

Exemption for motor sports racing.

A person responsible for the product
may offer for sale, sell, or dispense at a public or private racecourse, gasoline that is not
oxygenated in accordance with subdivision 1 if the gasoline is intended to be used exclusively
as a fuel for off-highway motor sports racing events.

Subd. 12.

Exemption for collector vehicle and off-road use.

(a) A person responsible
for the product may offer for sale, sell, or dispense at a retail gasoline station for use in
collector vehicles or vehicles eligible to be licensed as collector vehicles, off-road vehicles,
motorcycles, boats, snowmobiles, or small engines, gasoline that is not oxygenated in
accordance with subdivision 1 if the person meets the conditions in paragraphs (b) to (d).
If the nonoxygenated gasoline is for use in a small engine, it must be dispensed into a can
with a capacity of six or fewer gallons.

(b) The nonoxygenated gasoline must be unleaded premium grade as defined in section
239.751, subdivision 4.

(c) No more than one storage tank on the premises of the retail gasoline station may be
used for storage of the nonoxygenated gasoline offered for sale, sold, or dispensed by the
station.

(d) The pump stands must be posted with a permanent notice stating:
"NONOXYGENATED GASOLINE. FOR USE IN COLLECTOR VEHICLES OR
VEHICLES ELIGIBLE TO BE LICENSED AS COLLECTOR VEHICLES, OFF-ROAD
VEHICLES, MOTORCYCLES, BOATS, SNOWMOBILES, OR SMALL ENGINES
ONLY."

This notice must be posted at least two feet above the ground. A retail gasoline station that
sells nonoxygenated premium gasoline as defined in section 239.791, subdivision 15, must
register every two years with the director, or an entity appointed by the director, on forms
approved by the director, the total amount of nonoxygenated premium gasoline sold annually.

Subd. 13.

Exemption for certain riparian landowners.

(a) A person responsible for
the product may offer for sale, sell, and deliver directly to a bulk fuel storage tank gasoline
that is not oxygenated in accordance with subdivision 1 if the conditions in paragraphs (b)
to (e) are met.

(b) The nonoxygenated gasoline must be unleaded premium grade as defined in section
239.751, subdivision 4.

(c) The bulk fuel storage tank must be stationary or permanent.

(d) The bulk fuel storage tank must be under the control of an owner of littoral or riparian
property and located on that littoral or riparian property.

(e) The nonoxygenated gasoline must be purchased for use in vehicles that would qualify
for an exemption under subdivision 12, paragraph (a).

Subd. 14.

Exemption for aircraft operator.

A person responsible for the product may
offer for sale, sell, and deliver directly to a bulk fuel storage tank gasoline that is not
oxygenated in accordance with subdivision 1 for use in aircraft if the nonoxygenated gasoline
is unleaded premium grade as defined in section 239.751, subdivision 4.

Subd. 15.

Exemption for certain blend pumps.

(a) A person responsible for the product,
who offers for sale, sells, or dispenses nonoxygenated premium gasoline under one or more
of the exemptions in subdivisions 10 to 14, may sell, offer for sale, or dispense oxygenated
gasoline that contains less than the minimum amount of deleted text beginethanoldeleted text endnew text begin biofuelnew text end required under
subdivision 1 if all of the following conditions are met:

(1) the blended gasoline has an octane rating of 88 or greater;

(2) the gasoline is a blend of oxygenated gasoline meeting the requirements of subdivision
1 with nonoxygenated premium gasoline;

(3) the blended gasoline contains not more than ten percent nonoxygenated premium
gasoline;

(4) the blending of oxygenated gasoline with nonoxygenated gasoline occurs within the
gasoline dispenser; and

(5) the gasoline station at which the gasoline is sold, offered for sale, or delivered is
equipped to store gasoline in not more than two storage tanks.

(b) This subdivision applies only to those persons who met the conditions in paragraph
(a), clauses (1) through (5), on August 1, 2004, and registered with the director by November
1, 2004.

Subd. 16.

Exemption for recreational vehicle manufacturer.

A person responsible
for the product may offer for sale, sell, or dispense gasoline that is not oxygenated according
to subdivision 1 if the gasoline is intended to be used exclusively for research and
development by a manufacturer of snowmobiles, all-terrain vehicles, motorcycles, or
recreational vehicles.

new text begin Subd. 17. new text end

new text begin Exemption for vehicles not approved to use more than ten percent
biofuel.
new text end

new text begin A person responsible for the product who offers for sale or sells gasoline/biofuel
blends at retail must provide one fuel pump with a dedicated hose and nozzle dispensing a
gasoline/biofuel blend containing 9.2 to 10.0 percent biofuel for use by motorists who cannot
lawfully use a gasoline/biofuel blend containing more than ten percent biofuel pursuant to
waivers granted by the United States Environmental Protection Agency under United States
Code, title 42, section 7545.
new text end