1.1 	A bill for an act
1.2 	relating to agriculture; increasing minimum ethanol
1.3 	content required for gasoline sold in the state;
1.4 	amending Minnesota Statutes 2004, sections 239.761,
1.5 	subdivision 4; 239.791, subdivision 1; 296A.01,
1.6 	subdivisions 2, 25.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 239.761,
1.9 	subdivision 4, is amended to read:
1.10 		Subd. 4.Gasoline blended with ethanol.  (a) Gasoline may
1.11 	be blended with up to ten 20 percent, by volume, agriculturally
1.12 	derived, denatured ethanol that complies with the requirements
1.13 	of subdivision 5.
1.14 	(b) A gasoline-ethanol blend must:
1.15 	(1) comply with the volatility requirements in Code of
1.16 	Federal Regulations, title 40, part 80;
1.17 	(2) comply with ASTM specification D4814-01, or the
1.18 	gasoline base stock from which a gasoline-ethanol blend was
1.19 	produced must comply with ASTM specification D4814-01; and
1.20 	(3) not be blended with casinghead gasoline, absorption
1.21 	gasoline, condensation gasoline, drip gasoline, or natural
1.22 	gasoline after the gasoline-ethanol blend has been sold,
1.23 	transferred, or otherwise removed from a refinery or terminal.

1.24 	Sec. 2. Minnesota Statutes 2004, section 239.791,
1.25 	subdivision 1, is amended to read:
1.26 		Subdivision 1.Minimum ethanol content required.  (a)
2.1 	Except as provided in subdivisions 10 to 14, a person
2.2 	responsible for the product shall ensure that all gasoline sold
2.3 	or offered for sale in Minnesota must contain:
2.4 	(1) at least 10.0 ten percent denatured ethanol by volume;
2.5 	and 
2.6 	(2) at least 20 percent denatured ethanol by volume
2.7 	beginning the earlier of:
2.8 	(i) January 1, 2010; or 
2.9 	(ii) 60 days after the governor publishes notice in the
2.10 	State Register that at least 50 percent of the new model
2.11 	automobiles offered for sale in the state are warrantied for
2.12 	fuel with 20 percent ethanol by volume.
2.13 	(b) For purposes of enforcing the minimum ethanol
2.14 	requirement of paragraph (a), clause (1),a gasoline/ethanol
2.15 	blend will be construed to be in compliance if the ethanol
2.16 	content, exclusive of denaturants and permitted contaminants,
2.17 	comprises not less than 9.2 percent by volume and not more than
2.18 	10.0 ten percent by volume of the blend as determined by an
2.19 	appropriate United States Environmental Protection Agency or
2.20 	American Society of Testing Materials standard method of
2.21 	analysis of alcohol/ether content in motor fuels.
2.22 	(c) For purposes of enforcing the minimum ethanol
2.23 	requirement of paragraph (a), clause (2), a gasoline/ethanol
2.24 	blend will be construed to be in compliance if the ethanol
2.25 	content, exclusive of denaturants and permitted contaminants,
2.26 	comprises not less than 18.4 percent by volume and not more than
2.27 	20 percent by volume of the blend as determined by an
2.28 	appropriate United States Environmental Protection Agency or
2.29 	American Society of Testing Materials standard method of
2.30 	analysis of alcohol/ether content in motor fuels.

2.31 	Sec. 3. Minnesota Statutes 2004, section 296A.01,
2.32 	subdivision 2, is amended to read:
2.33 		Subd. 2.Agricultural alcohol gasoline.  "Agricultural
2.34 	alcohol gasoline" means a gasoline-ethanol blend of up to ten 20 
2.35 	percent agriculturally derived fermentation ethanol derived from
2.36 	agricultural products, such as potatoes, cereal, grains, cheese
3.1 	whey, sugar beets, forest products, or other renewable
3.2 	resources, that:
3.3 	(1) meets the specifications in ASTM specification
3.4 	D4806-01; and
3.5 	(2) is denatured as specified in Code of Federal
3.6 	Regulations, title 27, parts 20 and 21.

3.7 	Sec. 4. Minnesota Statutes 2004, section 296A.01,
3.8 	subdivision 25, is amended to read:
3.9 		Subd. 25.Gasoline blended with ethanol.  "Gasoline
3.10 	blended with ethanol" means gasoline blended with up to ten 20 
3.11 	percent, by volume, agriculturally derived, denatured ethanol.
3.12 	The blend must comply with the volatility requirements in Code
3.13 	of Federal Regulations, title 40, part 80.  The blend must also
3.14 	comply with ASTM specification D4814-01, or the gasoline base
3.15 	stock from which a gasoline-ethanol blend was produced must
3.16 	comply with ASTM specification D4814-01; and the
3.17 	gasoline-ethanol blend must not be blended with casinghead
3.18 	gasoline, absorption gasoline, condensation gasoline, drip
3.19 	gasoline, or natural gasoline after the gasoline-ethanol blend
3.20 	has been sold, transferred, or otherwise removed from a refinery
3.21 	or terminal.  The blend need not comply with ASTM specification
3.22 	D4814-01 if it is subjected to a standard distillation test.
3.23 	For a distillation test, a gasoline-ethanol blend is not
3.24 	required to comply with the temperature specification at the 50
3.25 	percent liquid recovery point, if the gasoline from which the
3.26 	gasoline-ethanol blend was produced complies with all of the
3.27 	distillation specifications.