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HF 462

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/14/2013 05:13pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/11/2013
1st Engrossment Posted on 02/28/2013
2nd Engrossment Posted on 03/14/2013

Current Version - 2nd Engrossment

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A bill for an act
relating to renewable energy; establishing definitions; providing a sunset date for
the cellulosic ethanol production goal; converting the ethanol minimum content
requirement to a biofuel requirement; expanding the petroleum replacement
goal; requiring a biofuels task force; repealing E20 mandate language;
amending Minnesota Statutes 2012, sections 41A.10, subdivision 2, by adding a
subdivision; 116J.437, subdivision 1; 239.051, by adding subdivisions; 239.791,
subdivisions 1, 2a, 2b; 239.7911; 296A.01, by adding a subdivision; repealing
Minnesota Statutes 2012, section 239.791, subdivision 1a.

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

Section 1.

Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:


Subd. 2.

Cellulosic biofuel production goal.

The state cellulosic biofuel production
goal is one-quarter of the total amount necessary for deleted text beginethanoldeleted text endnew text begin biofuelnew text end use required under
section 239.791, subdivision deleted text begin1adeleted text endnew text begin 1new text end, by 2015 or when cellulosic biofuel facilities in the state
attain a total annual production level of 60,000,000 gallons, whichever is first.

Sec. 2.

Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purpose of this section, the following terms
have the meanings given.

(b) "Green economy" means products, processes, methods, technologies, or services
intended to do one or more of the following:

(1) increase the use of energy from renewable sources, including through achieving
the renewable energy standard established in section 216B.1691;

(2) achieve the statewide energy-savings goal established in section 216B.2401,
including energy savings achieved by the conservation investment program under section
216B.241;

(3) achieve the greenhouse gas emission reduction goals of section 216H.02,
subdivision 1, including through reduction of greenhouse gas emissions, as defined in
section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
but not limited to, carbon capture, storage, or sequestration;

(4) monitor, protect, restore, and preserve the quality of surface waters, including
actions to further the purposes of the Clean Water Legacy Act as provided in section
114D.10, subdivision 1;

(5) expand the use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can
use biofuels, including activities to achieve the deleted text beginbiofuels 25 by 2025 initiative in sections
41A.10, subdivision 2, and 41A.11
deleted text endnew text begin petroleum replacement goal in section 239.7911new text end; or

(6) increase the use of green chemistry, as defined in section 116.9401.

For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.

Sec. 4.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Advanced biofuel. new text end

new text begin "Advanced biofuel" has the meaning given in Public
Law 110-140, title 2, subtitle A, section 201.
new text end

Sec. 5.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Biofuel. new text end

new text begin "Biofuel" means a renewable fuel with an approved pathway
under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
by the federal Energy Independence and Security Act of 2007, Public Law 110?140, and
approved for sale by the United States Environmental Protection Agency. As such, biofuel
includes both advanced and conventional biofuels.
new text end

Sec. 6.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Conventional biofuel. new text end

new text begin "Conventional biofuel" means ethanol derived
from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.
new text end

Sec. 7.

Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:


Subdivision 1.

Minimum deleted text beginethanoldeleted text endnew text begin biofuelnew text end 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 the quantity of deleted text beginethanoldeleted text endnew text begin biofuel
new text end required by clause (1) or (2), deleted text beginwhichever is greaterdeleted text endnew text begin at the option of the person responsible
for the product
new text end:

(1) new text beginthe greater of:
new text end

new text begin (i) new text end10.0 percent deleted text begindenatured ethanoldeleted text endnew text begin conventional biofuelnew text end by volume; or

deleted text begin (2)deleted text endnew text begin (ii)new text end the maximum percent of deleted text begindenatured ethanoldeleted text endnew text begin conventional biofuelnew text end by volume
authorized in a waiver granted by the United States Environmental Protection Agencynew text begin; or
new text end

new text begin (2) 10.0 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
new text end.

(b) For purposes of enforcing the deleted text beginminimum ethanoldeleted text end requirement of paragraph
(a), clause (1), new text beginitem (i), or clause (2), new text enda deleted text begingasoline/ethanoldeleted text endnew text begin gasoline/biofuelnew text end blend will be
construed to be in compliance if the deleted text beginethanoldeleted text endnew text begin biofuelnew text end content, exclusive of denaturants and
other permitted components, 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 deleted text beginof alcohol/ether content in engine fuelsdeleted text end.

(c) deleted text beginThe provisions of this subdivision are suspended during any period of time that
subdivision 1a, paragraph (a), is in effect.
deleted text endnew text begin The aggregate amount of biofuel blended
pursuant to this subdivision may be any biofuel; however, conventional biofuel must
comprise no less than the portion specified on and after the specified dates:
new text end

new text begin (1)
new text end
new text begin July 1, 2013
new text end
new text begin 90 percent
new text end
new text begin (2)
new text end
new text begin January 1, 2015
new text end
new text begin 80 percent
new text end
new text begin (3)
new text end
new text begin January 1, 2017
new text end
new text begin 70 percent
new text end
new text begin (4)
new text end
new text begin January 1, 2020
new text end
new text begin 60 percent
new text end
new text begin (5)
new text end
new text begin January 1, 2025
new text end
new text begin no minimum
new text end

Sec. 8.

Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:


Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted
by the United States Environmental Protection Agency under deleted text beginsection 211(f)(4) of the
deleted text end deleted text beginClean Air Act,deleted text end United States Code, title 42, section 7545, deleted text beginsubsection (f), paragraph (4),
deleted text end may alter the minimum content level required by subdivision 1, paragraph (a), clause deleted text begin(2)
deleted text end new text begin(1), item (ii)new text end deleted text begin, or subdivision 1a, paragraph (a), clause (2)deleted text end, the waiver must:

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

(2) 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
ethanol up to the maximum percent of denatured ethanol by volume authorized under
the waiver.

(b) The minimum deleted text beginethanoldeleted text endnew text begin biofuelnew text end requirement in subdivision 1, paragraph (a), clause
(2), deleted text beginor subdivision 1a, paragraph (a), clause (2),deleted text end shall, upon the grant of the federal waiver
new text begin or authority specified in United States Code, title 42, section 7545, that allows for greater
blends of gasoline and biofuel in this state
new text end, 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 deleted text beginethanoldeleted text end new text beginbiofuel new text endrequirement.

Sec. 9.

Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:


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 1, paragraph (a), clause (2), deleted text beginor subdivision 1a,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.

Sec. 10.

Minnesota Statutes 2012, section 239.7911, is amended to read:


239.7911 PETROLEUM REPLACEMENT PROMOTION.

Subdivision 1.

Petroleum replacement goal.

The tiered petroleum replacement
goal of the state of Minnesota is thatnew text begin biofuel comprises at least the specified portion of
total gasoline sold or offered for sale in this state by each specified year
new text end:

deleted text begin (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015; and
deleted text end

deleted text begin (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2025.
deleted text end

new text begin (1)
new text end
new text begin 2015
new text end
new text begin 14 percent
new text end
new text begin (2)
new text end
new text begin 2017
new text end
new text begin 18 percent
new text end
new text begin (3)
new text end
new text begin 2020
new text end
new text begin 25 percent
new text end
new text begin (4)
new text end
new text begin 2025
new text end
new text begin 30 percent
new text end

Subd. 2.

Promotion of renewable liquid fuels.

(a) The commissioner of agriculture,
in consultation with the commissioners of commerce and the Pollution Control Agency,
shall identify and implement activities necessary deleted text beginfor the widespread use of renewable
liquid fuels in the state
deleted text endnew text begin to achieve the goals in subdivision 1new text end. Beginning November
1, 2005, and continuing through 2015, the commissioners, or their designees, shall
deleted text beginwork withdeleted text endnew text begin convene a task force pursuant to section 15.014 that includesnew text end representatives
from the renewable fuels industry, petroleum retailers, refiners, automakers, small
engine manufacturers, and other interested groupsdeleted text begin, todeleted text endnew text begin. The task force shall assist the
commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
use of greater biofuel blends in this state. The task force must coordinate efforts with the
NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
and
new text end develop annual recommendations for administrative and legislative action.

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

(1) developing recommendations for new text beginspecific, cost-effective new text endincentives new text beginnecessary
to expedite the use of greater biofuel blends in this state including, but not limited to,
incentives
new text endfor retailers to install equipment necessary deleted text beginfor dispensingdeleted text endnew text begin to dispensenew text end renewable
liquid fuels to the public;

(2) expanding the renewable-fuel options available to Minnesota consumers by
obtaining federal approval for the use of deleted text beginE20 anddeleted text end additional blends that contain a greater
percentage of deleted text beginethanol, including but not limited to E30 and E50, as gasolinedeleted text endnew text begin biofuelnew text end;

(3) developing recommendations deleted text beginfor ensuringdeleted text end new text beginto ensure new text endthat motor vehicles and
small engine equipment have access to an adequate supply of fuel;

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

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

new text begin (6) facilitating the production and use of advanced biofuels in this statenew text enddeleted text begin.deleted text endnew text begin; andnew text end

new text begin (7) developing procedures for reporting the amount and type of biofuel under
subdivision 1 and section 239.791, subdivision 1, paragraph (c).
new text end

new text begin (c) Notwithstanding section 15.014, the task force required under paragraph (a)
expires on December 31, 2015.
new text end

Sec. 11.

Minnesota Statutes 2012, section 296A.01, is amended by adding a
subdivision to read:


new text begin Subd. 8b. new text end

new text begin Biobutanol. new text end

new text begin "Biobutanol" means isobutyl alcohol produced by
fermenting agriculturally generated organic material that is to be blended with gasoline,
and meets either:
new text end

new text begin (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
for general distribution; or
new text end

new text begin (2) in the absence of an ASTM Standard Specification, the following list of
requirements:
new text end

new text begin (i) visually free of sediment and suspended matter;
new text end

new text begin (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
temperature whichever is higher;
new text end

new text begin (iii) free of any adulterant or contaminant that can render it unacceptable for its
commonly used applications;
new text end

new text begin (iv) contains not less than 96 volume percent isobutyl alcohol;
new text end

new text begin (v) contains not more than 0.4 volume percent methanol;
new text end

new text begin (vi) contains not more than 1.0 volume percent water as determined by ASTM
standard test method E203 or E1064;
new text end

new text begin (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
by ASTM standard test method D1613;
new text end

new text begin (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
as determined by ASTM standard test method D381;
new text end

new text begin (ix) sulfur content of not more than 30 parts per million as determined by ASTM
standard test method D2622 or D5453; and
new text end

new text begin (x) contains not more than 4 parts per million total inorganic sulfate.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 239.791, subdivision 1a, new text end new text begin is repealed.
new text end