SF 4

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; increasing minimum ethanol
content required for gasoline sold in the state;
establishing a petroleum replacement goal; requiring
studies and reports; amending Minnesota Statutes 2004,
section 239.791, subdivision 1, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 239.

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

Section 1.

Minnesota Statutes 2004, section 239.791,
subdivision 1, is amended to read:

Subdivision 1.

Minimum ethanol content required.

(a)
Except as provided in subdivisions 10 to 14, a person
responsible for the product shall ensure that all gasoline sold
or offered for sale in Minnesota must contain at least 10.0
percent denatured ethanol by volume.

(b) For purposes of enforcing the minimum ethanol
requirement of paragraph (a), a gasoline/ethanol blend will be
construed to be in compliance if the ethanol content, exclusive
of denaturants and permitted contaminants, comprises not less
than 9.2 percent by volume and not more than 10.0 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 of alcohol/ether
content in motor fuels.

new text begin (c) The provisions of this subdivision are suspended during
any period of time that subdivision 1a, paragraph (a), is in
effect.
new text end

Sec. 2.

Minnesota Statutes 2004, section 239.791, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Minimum ethanol content required. new text end

new text begin (a) Except
as provided in subdivisions 10 to 14, on August 30, 2013, and
thereafter, a person responsible for the product shall ensure
that all gasoline sold or offered for sale in Minnesota must
contain at least 20 percent denatured ethanol by volume.
new text end

new text begin (b) For purposes of enforcing the minimum ethanol
requirement of paragraph (a), a gasoline/ethanol blend will be
construed to be in compliance if the ethanol content, exclusive
of denaturants and permitted contaminants, comprises not less
than 18.4 percent by volume and not more than 20 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 of alcohol content
in motor fuels.
new text end

new text begin (c) 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 paragraph (a) under any
theory of liability except for simple or willful negligence or
fraud. This paragraph does not preclude an action for
negligent, fraudulent, or willful acts. This paragraph 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.
new text end

new text begin (d) This subdivision expires on December 31, 2010, if by
that date:
new text end

new text begin (1) the commissioner of agriculture certifies and publishes
the certification in the State Register that at least 20 percent
of the volume of gasoline sold in the state is denatured
ethanol; or
new text end

new text begin (2) federal approval has not been granted for the use of
E20 as gasoline. The United States Environmental Protection
Agency's failure to act on an application shall not be deemed
approval of the use of E20, or a waiver under section 211(f)(4)
of the Clean Air Act, United States Code, title 42, section
7545, subsection (f), paragraph (4).
new text end

Sec. 3.

new text begin [239.7911] PETROLEUM REPLACEMENT PROMOTION.
new text end

new text begin Subdivision 1. new text end

new text begin Petroleum replacement goal. new text end

new text begin The petroleum
replacement goal of the state of Minnesota is that at least 20
percent of the liquid fuel sold in the state is derived from
renewable sources by December 31, 2015.
new text end

new text begin Subd. 2. new text end

new text begin Promotion of renewable liquid fuels. new text end

new text begin (a) The
commissioner of agriculture, in consultation with the
commissioners of commerce and the Pollution Control Agency,
shall identify and implement activities necessary for the
widespread use of renewable liquid fuels in the state.
Beginning November 1, 2005, and continuing through 2015, the
commissioners, or their designees, shall work with
representatives from the renewable fuels industry, petroleum
retailers, refiners, automakers, small engine manufacturers, and
other interested groups, to develop annual recommendations for
administrative and legislative action.
new text end

new text begin (b) The activities of the commissioners under this
subdivision shall include, but not be limited to:
new text end

new text begin (1) developing recommendations for incentives for retailers
to install equipment necessary for dispensing renewable liquid
fuels to the public;
new text end

new text begin (2) obtaining federal approval for the use of E20 as
gasoline;
new text end

new text begin (3) developing recommendations for ensuring that motor
vehicles and small engine equipment have access to an adequate
supply of fuel;
new text end

new text begin (4) working with the owners and operators of large
corporate automotive fleets in the state to increase their use
of renewable fuels; and
new text end

new text begin (5) working to maintain an affordable retail price for
liquid fuels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 4. new text begin REPORT ON E20 FUEL.
new text end

new text begin The commissioner of agriculture, in consultation with the
commissioners of employment and economic development and the
Pollution Control Agency, shall review the information and data
collected in the evaluation of any federal waiver request for
the use of E20 fuel in Minnesota. The commissioner shall use
existing budgetary and staff resources in conducting the
review. The review must include:
new text end

new text begin (1) issues involving the use of E20 fuel if such fuel is
mandated in Minnesota;
new text end

new text begin (2) effects of E20 on development of Minnesota's ethanol
industry; and
new text end

new text begin (3) effects of E20 on Minnesota consumers.
new text end

new text begin The commissioner shall present an initial report to the
legislative committees having jurisdiction over agriculture and
environment policy and finance on the findings of the review to
the legislature by January 15, 2009, and present an updated
report to those committees on January 15, 2011.
new text end

Sec. 5. new text begin SMALL ENGINE REPORT.
new text end

new text begin The commissioner of commerce, in consultation with the
commissioner of agriculture, shall:
new text end

new text begin (1) solicit information from national experts and
stakeholders, which may include the United States Consumer
Product Safety Commission, and review scientific studies on the
use of E20 gasoline in motorcycles, outboard engines,
snowmobiles, lawn and garden products, and other consumer
equipment powered by small spark-ignited engines;
new text end

new text begin (2) inventory and assess the availability of gasoline not
blended with ethanol throughout the state for exempt uses under
Minnesota Statutes, section 239.791, subdivisions 10 to 14, and
make recommendations for addressing those areas in which the
commissioner finds unblended gasoline is not readily available
to consumers;
new text end

new text begin (3) develop recommendations for notifying consumers as to
the availability of gasoline not blended with ethanol in the
state, and the appropriate use of gasoline blended with ethanol
in small spark-ignited engines found in motorcycles, outboard
engines, snowmobiles, and lawn and garden products; and
new text end

new text begin (4) by January 15, 2008, report to the agriculture and
environmental policy committees of the house of representatives
and senate on information and activities required under clauses
(1) to (3).
new text end