Minnesota Legislature
SF 13
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:10am
Current Version - as introduced
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16
2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14
A bill for an act
relating to energy; establishing standard to reduce carbon intensity of
transportation fuels; proposing coding for new law in Minnesota Statutes,
chapter 116.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[116.741] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For the purposes of sections 116.741 and 116.742, the terms
defined in this section have the meanings given them.
new text end
new text begin Subd. 2. new text end
new text begin Carbon dioxide equivalent. new text end
new text begin
"Carbon dioxide equivalent" means the
amount of carbon dioxide by weight that would produce the same global warming impact
as a given weight of another greenhouse gas, based on the best available science.
new text end
new text begin Subd. 3. new text end
new text begin Carbon intensity. new text end
new text begin
"Carbon intensity" means the quantity, as measured on
a full life-cycle basis, of carbon dioxide emission or carbon dioxide equivalent emission
of other greenhouse gases, per BTU of energy provided by a transportation fuel.
new text end
new text begin Subd. 4. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of the Pollution
Control Agency.
new text end
new text begin Subd. 5. new text end
new text begin Full life-cycle basis. new text end
new text begin
"Full life-cycle basis" means all inputs and
emissions related to the entire life cycle of a transportation fuel, including the production
and extraction of the feedstock or other primary energy source, and the processing,
transportation, storage, distribution, and combustion or other chemical conversion of
the fuel.
new text end
new text begin Subd. 6. new text end
new text begin Motor vehicle. new text end
new text begin
"Motor vehicle" means a vehicle that is self-propelled
and designed for use on a public highway.
new text end
new text begin Subd. 7. new text end
new text begin Renewable transportation fuel producer. new text end
new text begin
"Renewable transportation
fuel producer" means a manufacturer or producer of alcohol from agricultural, woody,
or other renewable feedstock for transportation fuel use. "Renewable transportation fuel
producer" also includes a manufacturer or producer of transportation fuels that is not a
"responsible party" as defined under subdivision 8.
new text end
new text begin Subd. 8. new text end
new text begin Responsible party. new text end
new text begin
"Responsible party" means a refiner, producer, blender,
or importer of transportation fuel in this state who:
new text end
new text begin
(1) receives petroleum products in this state for storage and subsequent distribution
by tank car or tank truck, or both;
new text end
new text begin
(2) produces, manufactures, or refines petroleum products in this state; or
new text end
new text begin
(3) imports petroleum products into this state for sale within the state via boat, barge,
truck, or pipeline for storage and subsequent delivery or further transportation from boat,
barge, truck, or pipeline terminals in this state.
new text end
new text begin
Responsible party does not include a renewable producer as defined in subdivision 7.
new text end
new text begin Subd. 9. new text end
new text begin Transportation fuel. new text end
new text begin
"Transportation fuel" means a fuel used to propel a
motor vehicle.
new text end
Sec. 2.
new text begin
[116.742] TRANSPORTATION FUEL LOW-CARBON FUEL
REDUCTION STANDARD.
new text end
new text begin Subdivision 1. new text end
new text begin Reduction standard. new text end
new text begin
(a) A responsible party shall reduce the carbon
intensity of transportation fuels it produces, refines, blends, or imports for sale in this
state by an aggregate of at least ten percent over the ten-year period from 2011 through
2020. The reduction must be at least one percent each year in the period 2011 through
2020. The reduction must be measured by using the applicable carbon intensity value of a
responsible party for a particular transportation fuel that is set by law, rule specifically
adopted pursuant to this section, or other determination of the commissioner.
new text end
new text begin
(b) There is no exclusive method to achieve the reduction. Methods of reduction
can include, among others:
new text end
new text begin
(1) blending high-carbon intensity fuels with low-carbon intensity fuels;
new text end
new text begin
(2) changes in production or extraction methods, and other activities reducing
carbon intensity; and
new text end
new text begin
(3) the purchase of low-carbon fuel credits created under the system developed
under subdivision 4.
new text end
new text begin
(c) The commissioner shall advise and assist responsible parties and others on
methods to achieve the reduction standard.
new text end
new text begin Subd. 2. new text end
new text begin Carbon intensity values. new text end
new text begin
Unless a different carbon intensity value is set
pursuant to subdivision 3, the table in this subdivision sets the carbon intensity value for
the identified transportation fuels for a responsible party and renewable transportation
fuel producer for 2011. The commissioner shall use a 2005-year baseline to calculate
a carbon intensity value.
new text end
|
new text begin
Transportation Fuel new text end |
new text begin
Carbon Intensity Value new text end |
|
new text begin
Gasoline new text end |
new text begin
1.000 new text end |
|
new text begin
Diesel new text end |
new text begin
0.987 new text end |
|
new text begin
Corn ethanol new text end |
new text begin
0.765 new text end |
|
new text begin
Cellulosic ethanol new text end |
new text begin
0.115 new text end |
|
new text begin
Coal to liquids new text end |
new text begin
2.443 new text end |
|
new text begin
Biodiesel new text end |
new text begin
0.350 new text end |
|
new text begin
Electricity new text end |
new text begin
........................................ new text end |
|
new text begin
Hydrogen new text end |
new text begin
........................................ new text end |
|
new text begin
Compressed natural gas new text end |
new text begin
........................................ new text end |
|
new text begin
Liquefied petroleum new text end |
new text begin
........................................ new text end |
|
new text begin
Methane new text end |
new text begin
........................................ new text end |
|
new text begin
Butanol new text end |
new text begin
........................................ new text end |
|
new text begin
DME new text end |
new text begin
........................................ new text end |
new text begin Subd. 3. new text end
new text begin Alternative carbon intensity value. new text end
new text begin
A responsible party or renewable
transportation fuel producer may propose to the commissioner a carbon intensity value
for a transportation fuel it produces, blends, or imports different than the value set
by subdivision 2. A party proposing a different value has the burden to show by a
preponderance of scientific evidence that the value set by subdivision 2 is not appropriate.
If the commissioner, after consultation with the commissioner of agriculture, finds after
notice and hearing that a party has met this burden, the commissioner shall set a value for
the transportation fuel based on the evidence in the record.
new text end
new text begin Subd. 4. new text end
new text begin Credits. new text end
new text begin
The commissioner shall develop a system of credits that may be
purchased and sold by responsible parties or renewable transportation fuel producers to
achieve the standard. The credits must be created by responsible party or renewable
transportation fuel producer activity that achieves a greater reduction in carbon intensity
in Minnesota than that required by this section.
new text end
new text begin Subd. 5. new text end
new text begin Reporting. new text end
new text begin
A responsible party shall report annually from 2011 through
2020 to the commissioner on activities it has taken or plans to take to achieve the reduction
standard. A responsible party shall report to the commissioner information requested
by the commissioner to assist the commissioner in determining whether the reduction
standard of this section has been or will be met. Beginning in 2013, the commissioner
shall require responsible parties to demonstrate achievement of the standard reduction by
submitting evidence of its transportation fuel carbon content or the purchase of sufficient
credits that comply with this section. The commissioner may accept reports filed under
other state and federal law for purposes of compliance with this section to the extent those
other reports contain information required under this section.
new text end
new text begin Subd. 6. new text end
new text begin Compliance; penalty. new text end
new text begin
The commissioner shall require a responsible
party to report information and cooperate with the commissioner to determine whether
the reduction standard of this section is being achieved. Beginning in 2014, a responsible
party may be penalized up to twice the cost of credits necessary for the responsible party
to achieve the reduction standard net of other reductions achieved. The penalty may
be imposed for each year the reduction standard is not achieved. The commissioner
shall consider the efforts of the responsible party to achieve the reduction standard in
determining whether to impose a penalty and in determining the amount of a penalty.
new text end
new text begin Subd. 7. new text end
new text begin Rules. new text end
new text begin
The commissioner shall, by December 10, 2010, adopt rules
necessary to implement and administer this section.
new text end