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Minnesota Session Laws - 1992, Regular Session

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1992 

                        CHAPTER 575-S.F.No. 2509 
           An act relating to motor fuels; weights and measures; 
          regulating octane and oxygenated fuels; amending 
          Minnesota Statutes 1990, sections 41A.09, subdivision 
          2, and by adding a subdivision; 239.75; 239.79; 
          239.80; 296.01, subdivisions 1, 2, 3, 4, 4a, 4b, 15, 
          24, and by adding subdivisions; 296.02, subdivisions 
          1, 2, and 7; Minnesota Statutes 1991 Supplement, 
          section 239.05, subdivision 1, and by adding 
          subdivisions; proposing coding for new law in 
          Minnesota Statutes, chapter 239; repealing Minnesota 
          Statutes 1990, sections 239.75, subdivisions 3 and 4; 
          239.76, as amended; 239.79, subdivisions 1 and 2; 
          296.01, subdivision 2a; and 325E.09.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 41A.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] For purposes of this section the 
terms defined in this subdivision have the meanings given them. 
    (a) "Ethanol" means agriculturally derived fermentation 
ethyl alcohol of a purity of at least 99 percent, determined 
without regard to any added denaturants, denatured in conformity 
with one of the approved methods set forth by the United States 
Department of Treasury, Bureau of Alcohol, Tobacco and Firearms, 
and derived from the following agricultural products:  potatoes, 
cereal, grains, cheese whey, or sugar beets, forest products, or 
other renewable resources, that: 
    (1) meets all of the specifications in ASTM specification D 
4806-88; and 
    (2) is denatured with unleaded gasoline or rubber 
hydrocarbon solvent as defined in Code of Federal Regulations, 
title 27, parts 211 and 212, as adopted by the Bureau of 
Alcohol, Tobacco and Firearms of the United States Treasury 
Department. 
    (b) "Wet alcohol" means agriculturally derived fermentation 
ethyl alcohol having a purity of at least 50 percent but less 
than 99 percent.  
    Sec. 2.  Minnesota Statutes 1990, section 41A.09, is 
amended by adding a subdivision to read: 
    Subd. 7.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
PUBLIC SERVICE.] The agriculturally derived ethanol definition 
and specifications in this section are intended to match the 
definition and specifications in sections 239.761 and 296.01. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
239.05, subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] The terms used in sections 239.01 
to 239.53 this chapter have the meanings given them in this 
section. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 2a.  [ASTM.] "ASTM" means the American Society for 
Testing and Materials, a private organization that utilizes 
committees of industry representatives and regulators to develop 
product quality standards and test methods to be used by 
industries, regulatory agencies, and purchasing agents. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 2b.  [ASTM SPECIFICATION.] "ASTM specification" means 
a standard quality specification developed and published by the 
American Society for Testing and Materials.  Each specification 
includes references to standard test methods, also developed and 
published by ASTM. 
     Sec. 6.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 2c.  [ATTESTATION ENGAGEMENT.] "Attestation 
engagement" means a standard auditing procedure prescribed by 
the Association of Independent Certified Public Accountants. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 6a.  [CARBON MONOXIDE CONTROL AREA.] "Carbon monoxide 
control area" means a geographic area designated as an 
oxygenated gasoline carbon monoxide control area by the United 
States Environmental Protection Agency. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
     Subd. 6b.  [CARBON MONOXIDE CONTROL PERIOD.] "Carbon 
monoxide control period" means a period of months designated as 
a carbon monoxide control period by the United States 
Environmental Protection Agency. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 6c.  [COMMISSIONER.] "Commissioner" means the 
commissioner of the department of public service. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 7a.  [DEPARTMENT.] "Department" means the department 
of public service. 
    Sec. 11.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 8a.  [DISPENSER.] "Dispenser" means a device designed 
to measure and deliver liquid petroleum products used as fuel. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 8b.  [DISTRIBUTOR.] "Distributor" means a person who 
is licensed by the department of revenue, under the requirements 
of section 296.06, to manufacture, refine, receive, distribute, 
sell, or use petroleum products in Minnesota. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 8c.  [DIVISION.] "Division" means the division of 
weights and measures of the department of public service. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 8d.  [EPA.] "EPA" means the United States 
Environmental Protection Agency. 
     Sec. 15.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
     Subd. 8e.  [GASOLINE.] "Gasoline" has the meaning given it 
in section 296.01, subdivision 3. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 10a.  [OXYGENATE.] "Oxygenate" means agriculturally 
derived, denatured ethanol, or other alcohol or ether, approved 
as an oxygenate by the United States Environmental Protection 
Agency. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 10b.  [OXYGENATE BLENDER.] "Oxygenate blender" means 
a person who has registered with the division to blend and 
distribute, transport, sell, or offer to sell gasoline 
containing a minimum of 2.0 percent, and an average of 2.7 
percent oxygen by weight. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 10c.  [OXYGENATED GASOLINE.] "Oxygenated gasoline" 
means gasoline that has been blended with agriculturally derived 
denatured ethanol or with another oxygenate approved by the 
United States Environmental Protection Agency. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 12a.  [PERSON RESPONSIBLE FOR THE PRODUCT.] "Person 
responsible for the product" means a person or persons, 
corporation, partnership, stock company, society, association, 
or its agent or employee who processes, blends, holds, stores, 
imports, transfers, distributes, offers for sale or use, or 
sells petroleum products in Minnesota and who possesses 
petroleum products at the time they are sampled or inspected by 
the director. 
    Sec. 20.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 12b.  [PETROLEUM PRODUCT, PRODUCT.] "Petroleum 
product" and "product" mean all of the products defined in 
section 296.01, subdivisions 3 to 4d, 15, and 24. 
    Sec. 21.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 13a.  [REFINERY, TERMINAL.] "Refinery" or "terminal" 
means a petroleum refinery, pipeline terminal, river terminal, 
storage facility, or other point of origin where petroleum 
products are manufactured, or imported by rail, truck, barge, or 
pipe; and held, stored, transferred, offered for distribution, 
distributed, offered for sale, or sold.  For the purpose of 
restricting petroleum product blending, this definition includes 
all refineries and terminals within and outside of Minnesota, 
but does not include a licensed distributor's bulk storage 
facility that is used to store petroleum products for which the 
petroleum inspection fee charged under this chapter is either 
not due or has been paid. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
239.05, is amended by adding a subdivision to read: 
    Subd. 14a.  [SAMPLE.] "Sample" means a sample of a 
petroleum product taken from a dispenser or storage tank by the 
division or a sample of a petroleum product provided to the 
division by a licensed distributor. 

                    INSPECTION OF PETROLEUM PRODUCTS
    Sec. 23.  Minnesota Statutes 1990, section 239.75, is 
amended to read: 
    239.75 [INSPECTION OF PETROLEUM PRODUCTS.] 
    Subdivision 1.  [INSPECTION TO BE MADE.] The department of 
public service shall make inspection of petroleum products 
wherever processed, held, stored, or offered for sale or used, 
and shall secure samples periodically from importations in their 
original containers to determine their specifications when 
tested by the methods of the American Society for Testing 
Materials.  Upon the request of the department of public 
service, a person holding, storing, offering for sale, or using 
petroleum products shall permit the department of public service 
to take for testing free samples, not to exceed 32 ounces each, 
of the products when necessary for the purposes of this 
chapter.  The department of public service shall test samples of 
petroleum products received and submitted by any licensed 
distributor and shall inform the distributor of the results of 
the tests.  The director shall: 
    (1) take samples, free of charge, of petroleum products 
wherever processed, blended, held, stored, imported, 
transferred, offered for sale or use, or sold in Minnesota, 
limiting each sample to: 
    (i) two-tenths of one gallon, except when an octane test is 
planned; or 
    (ii) seven-tenths of one gallon for an octane test; 
    (2) inspect and test petroleum product samples according to 
the methods of ASTM or other valid test methods adopted by rule, 
to determine whether the products comply with the specifications 
in section 239.761; 
    (3) inspect petroleum product storage tanks to ensure that 
the products are free from water and impurities; 
    (4) inspect and test samples submitted to the department by 
a licensed distributor, making the test results available to the 
distributor; 
    (5) inspect the labeling, price posting, and price 
advertising of petroleum product dispensers and advertising 
signs at businesses or locations where petroleum products are 
sold, offered for sale or use, or dispensed into motor vehicles; 
    (6) maintain records of all inspections and tests according 
to the records retention policies of the department of 
administration; 
    (7) delegate to division personnel, at the director's 
discretion, any or all of the responsibilities, duties, and 
powers in sections 239.75 to 239.80; 
    (8) publish octane test data and information to assist 
persons who produce and sell gasoline and gasoline-oxygenate 
blends; 
    (9) register gasoline-oxygenate blenders according to the 
requirements of the EPA; 
    (10) audit the records of any person responsible for the 
product to determine compliance with sections 239.75 to 239.792; 
    (11) after consulting with the commissioner of the 
pollution control agency, grant a temporary exemption from the 
oxygenated gasoline requirements in section 239.791 if the 
supply of oxygenate is insufficient to produce 
gasoline-oxygenate blends during an EPA-designated carbon 
monoxide control period; and 
    (12) adopt, as an enforcement policy for the division, 
reasonable margins of uncertainty for the tests used to 
determine compliance with the specifications in section 239.761, 
the oxygen percentages in section 239.791, and the octane 
requirements in section 239.792 and apply the margins of 
uncertainty to only tests performed by the division, not by 
adding the margins to uncertainties in tests performed by any 
person responsible for the product. 
    Subd. 2.  [PETROLEUM SAMPLES; WHEN NOT MEETING 
SPECIFICATIONS.] A record of the inspection shall be made.  Any 
material not meeting the specifications under section 239.76 
shall be sealed in the container from which the sample was 
secured or placed in separate storage under seal until a method 
of its disposition has been approved by the department of public 
service.  When a sample does not comply with the specifications 
in section 239.761, the director shall reject the noncomplying 
product from which the sample was taken and employ any or all of 
the following actions to prohibit sale of the noncomplying 
product: 
    (1) issue a stop sale order to a person responsible for the 
product; 
    (2) reject and mark as rejected the pumps, meters, or other 
dispensers from which the noncomplying product was obtained; 
    (3) seal and mark as sealed the storage tanks from which 
the noncomplying product was obtained; 
    (4) issue a citation; 
    (5) request that a city or county attorney draft a 
misdemeanor complaint; 
    (6) when a product fails to comply with the specifications 
and when use of the product does not endanger the public health 
or safety or adversely affect the emissions characteristics of 
the equipment in which it is used, advise the person responsible 
for the product that the product must be blended with another 
product to bring it into compliance. 
    Subd. 3.  [CALIBRATION OR GAUGE CHARTS.] A person holding 
petroleum products in storage tanks for sale or for use as 
special fuel shall maintain a calibration or gauge chart for 
each tank. 
    Subd. 4.  [ENTRY UPON PREMISES.] The department of public 
service may enter into or upon the premises of a distributor, 
bulk purchaser, or dealer of petroleum products to inspect the 
receptacles in which the products are stored.  A distributor, 
bulk purchaser, or dealer shall keep the receptacles free from 
impurities.  If the receptacles are found to contain impurities, 
they must be sealed until a method of disposition of the 
material has been approved by the department of public service. 
    Subd. 5.  [PRODUCT QUALITY, RESPONSIBILITY.] After a 
gasoline product is purchased, transferred, or otherwise removed 
from a refinery or terminal, the person responsible for the 
product shall: 
    (1) keep the product free from contamination with water and 
impurities; 
    (2) not blend the product with dissimilar petroleum 
products, for example, gasoline must not be blended with diesel 
fuel; 
    (3) not blend the product with any contaminant, dye, 
chemical, or additive, except: 
    (i) agriculturally derived, denatured ethanol that complies 
with the specifications in this chapter; 
    (ii) an antiknock additive, or an additive designed to 
replace tetra-ethyl lead, that is registered by the EPA; or 
    (iii) a dye to distinguish heating fuel from low sulfur 
diesel fuel; and 
    (4) maintain a record of the name or chemical composition 
of the additive, with the product shipping manifest or bill of 
lading for one year after the date of the manifest or bill. 
    Subd. 6.  [REJECTED PRODUCTS, RESPONSIBILITY.] When a 
product is rejected, the person responsible for the product 
shall blend or remove the product according to the director's 
instructions.  If the rejected product is blended with another 
product to bring it into compliance, the person responsible for 
the product shall provide testing and documentation, in a manner 
approved by the director, to prove to the director that the 
blended product will comply with the specifications in section 
239.761.  If the rejected product is removed, the person 
responsible for the product shall provide documentation to prove 
to the director that the rejected product has been removed and 
replaced with a product that complies with the specifications in 
section 239.761. 
    Sec. 24.  [239.751] [PETROLEUM DISPENSERS, PRICES, LABELS, 
AND SIGNS.] 
    Subdivision 1.  [DISPENSER REQUIREMENTS, AUTOMATIC PRICE 
COMPUTATION.] A retail petroleum dispenser that automatically 
computes the total price of each sale must have a unit price 
indicator on the face of the computer mechanism that clearly 
displays the price per gallon or price per liter, including all 
taxes.  The unit price indicator must not be covered or obscured 
in any manner. 
    Subd. 2.  [DISPENSER REQUIREMENTS, MANUAL PRICE 
COMPUTATION.] A retail petroleum dispenser that does not 
automatically compute the total price of each sale must have a 
sign stating the price per gallon or price per liter, including 
all taxes.  The sign must be white with black letters and 
figures.  The letters and figures must be at least one inch 
high.  The sign must be clearly and conspicuously posted on all 
dispenser faces, as close as possible to the total quantity 
indicator.  Examples of acceptable unit price signs include: 
"$1.20/gallon," or "$0.32/liter." 
    Subd. 3.  [PRICE ADVERTISING SIGNS; GASOLINE, DIESEL FUEL.] 
A sign or device designed to advertise the price of gasoline or 
diesel fuel, that is posted within view of any public highway, 
road, or street, or on or near premises where gasoline is sold 
at retail, must meet the following requirements: 
    (a) The price per gallon, or price per liter, including all 
taxes and fees to be collected in connection with the sale, must 
be clearly stated in figures of uniform size and prominence. 
    (b) If the advertised price per gallon, or price per liter, 
is subject to any conditions or restrictions, the conditions or 
restrictions must be clearly posted on the sign.  For example, 
if a customer must pay cash to obtain the advertised price, the 
sign must clearly state "cash," "cash price," or "cash discount 
price." 
    Subd. 4.  [USE OF TERM "PREMIUM".] The term "premium" may 
be used only to advertise, or to identify a dispenser used to 
dispense, gasoline with an octane rating of 91 or greater. 
    Subd. 5.  [MULTIPLE PRICE STRUCTURE, SIGNS.] A person shall 
post signs on the dispensers, on the dispenser island, or on the 
canopy over the dispensers, that clearly state the conditions 
for obtaining the price offered on the dispensers, if the person:
    (1) sells or offers to sell gasoline or diesel fuel at 
retail; 
    (2) has more than one dispenser for a specific grade of 
product; and 
    (3) sets different dispensers to compute a total sale at 
different prices for the same product. 
For example, signs must be posted to direct customers to 
separate dispensers for full service or self-service prices. 
    Subd. 6.  [NONCONFORMING DISPENSERS, SIGNS, DISPLAYS, OR 
LABELS.] When a dispenser, sign, display, or label does not 
comply with the requirements in this section, the director shall 
reject the noncomplying dispenser or other equipment and employ 
any or all of the following actions to prohibit use of the 
noncomplying dispenser or other equipment: 
    (1) reject and mark as rejected the pumps, meters, or other 
dispensers that do not comply, or are used in conjunction with 
advertising signs or price displays that do not comply; 
    (2) issue a written warning to the owner, operator, 
manager, or attendant of the business or property where the 
dispenser or sign is located; 
    (3) issue a citation to the owner, operator, manager, or 
attendant of the business or property where a dispenser or sign 
is located; 
    (4) request that a city or county attorney draft a 
misdemeanor complaint. 
    Subd. 7.  [DISPENSERS AND OTHER EQUIPMENT; RESPONSIBILITY.] 
A person responsible for the product must meet all of the 
requirements in this section.  When a dispenser or other 
equipment is rejected for failure to comply with this section, a 
person responsible for the product is required to correct the 
dispenser, price display violation, or price advertising 
violation. 
    Sec. 25.  [239.752] [STORAGE TANK MARKING; RETAIL 
LOCATIONS.] 
    A person responsible for the product shall securely mount a 
permanent engraved plastic or stamped metal identification tag 
on the fill pipe of a petroleum product storage tank at a 
business where petroleum products are sold, offered for sale, or 
dispensed at retail into the storage tanks of motor vehicles.  
The identification tag must clearly display the grade or trade 
name of the product stored in the tank.  The grade or trade name 
on the identification tag must be the same as the grade or trade 
name displayed on the dispensers through which the product is 
dispensed.  The grade or trade name must not be displayed on an 
access cover over a fill pipe. 
    Sec. 26.  [239.753] [ENTRY UPON PREMISES AND ACCESS TO 
RECORDS.] 
    The director, or a delegated employee of the department, 
may enter the premises of a person who processes, holds, stores, 
imports, transfers, offers for sale or use, or sells petroleum 
products in Minnesota to: 
    (1) inspect the product in storage tanks and take samples 
from the storage tanks and dispensing equipment connected to the 
storage tanks; 
    (2) inspect petroleum product dispensers and related signs 
and equipment, advertising signs, price displays, oxygenate 
labels, and octane labels; and 
    (3) audit and make copies of petroleum product shipping, 
receiving, and invoice documents and records to determine 
compliance with sections 239.75 to 239.792. 
    The director shall limit inspection to information and data 
relating to product quantity, quality, oxygen content, and 
octane.  The director shall maintain the confidentiality of 
certain records as required by section 239.791. 
    Sec. 27.  [239.761] [PETROLEUM PRODUCT SPECIFICATIONS.] 
    Subdivision 1.  [APPLICATION.] A person responsible for the 
product must meet the specifications in subdivisions 3 to 12.  
The specifications apply to petroleum products processed, held, 
stored, imported, transferred, distributed, offered for 
distribution, offered for sale or use, or sold in Minnesota. 
    Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
AGRICULTURE.] The petroleum product specifications in this 
section are intended to match the definitions and specifications 
in sections 41A.09 and 296.01.  Petroleum products named in 
subdivisions 3 to 12 are defined in section 296.01. 
    Subd. 3.  [GASOLINE.] Gasoline that is not blended with 
ethanol must not be contaminated with water or other impurities 
and must comply with ASTM specification D 439-89.  Gasoline that 
is not blended with ethanol must also comply with the volatility 
requirements in Code of Federal Regulations, title 40, part 80.  
After gasoline is sold, transferred, or otherwise removed from a 
refinery or terminal, a person responsible for the product: 
    (1) may blend the gasoline with agriculturally derived 
ethanol as provided in subdivision 4; 
    (2) shall not blend the gasoline with any oxygenate other 
than denatured, agriculturally derived ethanol; 
    (3) shall not blend the gasoline with other petroleum 
products that are not gasoline or denatured, agriculturally 
derived ethanol; 
    (4) shall not blend the gasoline with products commonly and 
commercially known as casinghead gasoline, absorption gasoline, 
condensation gasoline, drip gasoline, or natural gasoline; and 
    (5) may blend the gasoline with a detergent additive, an 
antiknock additive, or an additive designed to replace 
tetra-ethyl lead, that is registered by the EPA. 
    Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] Gasoline may be 
blended with up to ten percent, by volume, agriculturally 
derived, denatured ethanol that complies with the requirements 
of subdivision 5.  A gasoline-ethanol blend must: 
    (1) comply with the volatility requirements in Code of 
Federal Regulations, title 40, part 80; 
    (2) comply with ASTM specification D 4814-90a, or the 
gasoline base stock from which a gasoline-ethanol blend was 
produced must comply with ASTM specification D 4814-90a; and 
    (3) not be blended with casinghead gasoline, absorption 
gasoline, condensation gasoline, drip gasoline, or natural 
gasoline after the gasoline-ethanol blend has been sold, 
transferred, or otherwise removed from a refinery or terminal. 
    Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
be blended with gasoline must be agriculturally derived and must 
comply with ASTM specification D 4806-88.  This includes the 
requirement that ethanol may be denatured only with specified 
concentrations of unleaded gasoline or rubber hydrocarbon 
solvent as defined in Code of Federal Regulations, title 27, 
parts 211 and 212, as adopted by the Bureau of Alcohol, Tobacco 
and Firearms of the United States Treasury Department. 
    Subd. 6.  [GASOLINE BLENDED WITH AN OXYGENATE.] Gasoline 
that is blended with an oxygenate, other than denatured ethanol, 
must comply with ASTM specification D 4814-90a.  Oxygenates, 
other than denatured ethanol, must not be blended into gasoline 
after the gasoline has been sold, transferred, or otherwise 
removed from a refinery or terminal. 
    Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
with ASTM specification D 396-90a. 
    Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
with ASTM specification D 975-90. 
    Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
specification D 3699-90. 
    Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
comply with ASTM specification D 910-90. 
    Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
turbine fuel and jet fuel must comply with ASTM specification D 
1655-90. 
    Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
nonaviation gas turbine engines must comply with ASTM 
specification D 2880-90a. 
    Sec. 28.  Minnesota Statutes 1990, section 239.79, is 
amended to read: 
    239.79 [PETROLEUM PRODUCTS; TRANSACTION REQUIREMENTS.] 
    Subdivision 1.  [PRICES POSTED.] A gasoline pump in this 
state shall have the total sales price per gallon posted on the 
pump in a conspicuous manner. 
    Subd. 2.  [PRODUCT INFORMATION.] When gasoline blended with 
alcohol is sold, offered for sale, or dispensed for use in motor 
vehicles, the dispenser shall be clearly marked in compliance 
with requirements of Code of Federal Regulations, title 40, part 
80.27(d). 
    Subd. 3.  [RESULTS OF TEST SUPPLIED BY SHIPPER TO 
DISTRIBUTOR.] Upon request from a distributor, a shipper of 
petroleum products shall, at the time of shipment, supply a 
distributor with the results of typical tests of the petroleum 
product shipped to the distributor.  
    Subd. 4.  [SALES OF CERTAIN PETROLEUM PRODUCTS ON GROSS 
VOLUME BASIS.] A person responsible for the products listed in 
this subdivision shall transfer, ship, distribute, offer for 
distribution, sell, or offer to sell the products by volume.  
Volumetric measurement of the product must not be temperature 
compensated, or adjusted by any other factor.  This subdivision 
applies to gasoline, number one and number two diesel fuel oils, 
number one and number two heating fuel oils, kerosene, denatured 
ethanol that is to be blended into gasoline, and an oxygenate 
that is to be blended into gasoline.  This subdivision does not 
apply to the measurement of petroleum products transferred, 
sold, or traded between refineries, between refineries and 
terminals, or between terminals.  
    Sec. 29.  [239.791] [OXYGENATED GASOLINE.] 
    Subdivision 1.  [MINIMUM OXYGEN CONTENT REQUIRED.] A person 
responsible for the product shall comply with the following 
requirements: 
    (a) After October 31, 1992, gasoline sold or offered for 
sale in a carbon monoxide control area, and during a carbon 
monoxide control period, must contain at least two percent 
oxygen by weight. 
    (b) After October 31, 1995, gasoline sold or offered for 
sale at any time in a carbon monoxide control area must contain 
at least two percent by oxygen weight. 
    (c) After October 31, 1997, all gasoline sold or offered 
for sale in Minnesota must contain at least two percent oxygen 
by weight. 
    Subd. 2.  [AVERAGE OXYGEN CONTENT REQUIRED.] After October 
31, 1992, the total amount of gasoline distributed, transported, 
delivered, sold, or offered for sale by a registered oxygenate 
blender, during each annual carbon monoxide control period, in 
each carbon monoxide control area, must contain an average of 
2.7 percent oxygen by weight.  
    Subd. 3.  [BLENDING RESTRICTION.] When gasoline contains an 
oxygenate, a person responsible for the product shall not blend 
the product with ethanol or with any other oxygenate after it is 
transferred or otherwise removed from a refinery or terminal. 
    Subd. 4.  [BLENDER REGISTRATION.] A person shall register 
with the director, as prescribed by the director, at least 30 
days before the beginning of a control period, if the person: 
    (1) is either a licensed distributor or owns products 
stored at a refinery or terminal; 
    (2) blends gasoline with an oxygenate; and 
    (3) distributes, transports, delivers, sells, or offers to 
sell the gasoline-oxygenate blend in a carbon monoxide control 
area, during a carbon monoxide control period. 
    Subd. 5.  [OXYGENATE BLENDING RECORDS.] A registered 
oxygenate blender shall maintain records of gasoline-oxygenate 
blends for one year after the end of each carbon monoxide 
control period.  The records must be audited according to 
subdivision 6.  The records must include: 
    (1) a record of the gallons of gasoline, gallons of 
oxygenate, and calculated weight percent of oxygen in each 
gasoline-oxygenate blend produced, distributed, transported, 
delivered, sold, or offered for sale in a carbon monoxide 
control area; and 
    (2) a cumulative record of the gallons of gasoline, gallons 
of oxygenate, and calculated weight percent of oxygen in all 
gasoline-oxygenate blends produced, distributed, transported, 
delivered, sold, or offered for sale in a carbon monoxide 
control area, and during a carbon monoxide control period. 
    Subd. 6.  [OXYGENATE RECORDS; SELF AUDITS.] A registered 
oxygenate blender shall commission an attestation engagement 
performed by a certified public accountant to investigate 
compliance with this section and with EPA oxygenated fuel 
requirements.  The audit report, including the cumulative record 
of gasoline oxygenate blends, must be submitted to the director, 
as prescribed by the director, within 120 days after the end of 
each carbon monoxide control period. 
    Subd. 7.  [OXYGENATE RECORDS; STATE AUDITS.] The director 
shall audit the records of registered oxygenate 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 person responsible for the 
product who delivers, distributes, sells, or offers to sell 
gasoline in a carbon monoxide control area, during a carbon 
monoxide control period, shall provide, at the time of delivery, 
a bill of lading or shipping manifest to the person who receives 
the gasoline.  For oxygenated gasoline, the bill or manifest 
must state:  "This fuel contains an oxygenate.  Do not blend 
this fuel with ethanol or with any other oxygenate."  For 
nonoxygenated gasoline, the bill or manifest must state:  "This 
fuel must not be sold at retail or used in a carbon monoxide 
control area."  This subdivision does not apply to sales or 
transfers of gasoline when the gasoline is dispensed into the 
supply tanks of motor vehicles. 
    Subd. 9.  [DISPENSER LABELING.] During a carbon monoxide 
control period, and in a carbon monoxide control area, a person 
responsible for the product must clearly label each gasoline 
dispenser controlled by the person.  The label must state: 
    (1) "The gasoline dispensed from this pump is oxygenated 
and will reduce carbon monoxide pollution from motor vehicles."; 
or 
    (2) "From October 1 through January 31, the gasoline 
dispensed from this pump is oxygenated and will reduce carbon 
monoxide pollution from motor vehicles." 
    Sec. 30.  [239.792] [GASOLINE OCTANE.] 
    Subdivision 1.  [GASOLINE OCTANE; DISCLOSURE.] A 
manufacturer, hauler, blender, agent, jobber, consignment agent, 
importer, or distributor who sells, delivers, or distributes 
gasoline or gasoline-oxygenate blends, shall provide, at the 
time of delivery, a bill of lading or shipping manifest to the 
person who receives the gasoline.  The bill or manifest must 
state the minimum octane of the gasoline delivered.  The stated 
octane number must be the average of the "motor method" octane 
number and the "research method" octane number as determined by 
the test methods in ASTM specification D 439-89 or D 4814-90a, 
or by a test method adopted by department rule. 
    Subd. 2.  [GASOLINE OCTANE; DISPENSER LABELING.] A person 
responsible for the product shall clearly, conspicuously, and 
permanently label each gasoline dispenser that is used to sell 
gasoline or gasoline-oxygenate blends at retail or to dispense 
gasoline or gasoline-oxygenate blends into the fuel supply tanks 
of motor vehicles, with the minimum octane of the gasoline 
dispensed.  The label must meet the following requirements: 
    (a) The octane number displayed on the label must represent 
the average of the "motor method" octane number and the 
"research method" octane number as determined by the test 
methods in ASTM specification D 439-89 or D 4814-90a, or by a 
test method adopted by department rule. 
     (b) The label must be at least 2-1/2 inches high and three 
inches wide, with a yellow background, black border, and black 
figures and letters. 
     (c) The number representing the octane of the gasoline must 
be at least one inch high. 
     (d) The label must include the words "minimum octane" and 
the term "(R+M)/2" or "(RON+MON)/2". 
    Sec. 31.  Minnesota Statutes 1990, section 239.80, is 
amended to read: 
    239.80 [VIOLATIONS; PENALTIES.] 
    Subdivision 1.  [VIOLATIONS; ACTIONS OF DEPARTMENT.] 
The department director, or any of its employees, delegated 
employee shall condemn, seize, or destroy any petroleum products 
processed, held, stored, offered for sale, or used in violation 
of section use the methods in section 239.75 to enforce sections 
239.10, 239.76 239.761, 239.78, or 239.79, 239.791, and 
239.792.  Storage tanks containing the petroleum products, and 
pumps attached to the storage tanks, shall be marked in a manner 
to be prescribed by the department indicating a violation of 
this chapter.  This marking shall remain on the tank or pump and 
prevent sale or use of product contained in it until the 
petroleum product conforms with sections 239.10, 239.76, 239.78, 
and 239.79. 
    Subd. 2.  [PENALTY.] Any A person who fails to comply with 
any provision of section 239.10, 239.76 239.761, 239.78, or 
239.79 shall be, 239.791, or 239.792 is guilty of a misdemeanor. 
    Sec. 32.  Minnesota Statutes 1990, section 296.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TERMS.] Unless the language or context 
clearly indicates that a different meaning is intended, the 
following terms, for the purposes of sections 296.01 to 296.421 
shall be given used in this chapter and sections 239.75 to 
239.80 have the meanings subjoined to given them in this 
section.  The petroleum product definitions and specifications 
in this section are intended to match the definitions and 
specifications in sections 41A.09 and 239.761. 
    Sec. 33.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ASTM.] "ASTM" means the American Society for 
Testing and Materials, a private organization that utilizes 
committees of industry representatives and regulators to develop 
product quality standards and test methods to be used by 
industries, regulatory agencies, and purchasing agents. 
    Sec. 34.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [PETROLEUM DISTILLATE.] "Petroleum distillate" 
means a hydrocarbon or group of hydrocarbon compounds that have 
been extracted from petroleum crude oil by a distillation 
process involving evaporation by heating, and subsequent 
condensation by cooling. 
    Sec. 35.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [PETROLEUM RESIDUAL.] "Petroleum residual" means 
a heavy hydrocarbon or group of heavy hydrocarbon compounds that 
do not evaporate during a distillation process. 
    Sec. 36.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 1d.  [REFINERY, TERMINAL.] "Refinery" or "terminal" 
means any petroleum refinery, pipeline terminal, river terminal, 
storage facility, or other point of origin where petroleum 
products are manufactured, or imported by rail, truck, barge, or 
pipe; and held, stored, transferred, offered for distribution, 
distributed, offered for sale, or sold.  For the purpose of 
restricting petroleum product blending, this definition includes 
all refineries and terminals within and outside of Minnesota.  
For the purpose of assessing fees, this definition does not 
include a licensed distributor's bulk storage facility that is 
used to store petroleum products for which the petroleum 
inspection fee charged under chapter 239 is either not due or 
has been paid. 
    Sec. 37.  Minnesota Statutes 1990, section 296.01, 
subdivision 2, is amended to read: 
    Subd. 2.  [PETROLEUM PRODUCTS.] "Petroleum products" 
means gasoline and fuel oil all of the products defined in 
subdivisions 3 to 4d, 15, and 24.  
    Sec. 38.  Minnesota Statutes 1990, section 296.01, 
subdivision 3, is amended to read: 
    Subd. 3.  [GASOLINE.] "Gasoline" means:  
    (a) all products commonly or commercially known or sold as 
gasoline (including casinghead and absorption or natural 
gasoline) regardless of their classification or uses, except 
casinghead gasoline, absorption gasoline, condensation gasoline, 
drip gasoline, or natural gasoline that under the requirements 
of section 239.761, subdivision 3, must not be blended with 
gasoline that has been sold, transferred, or otherwise removed 
from a refinery or terminal; and 
    (b) any liquid prepared, advertised, offered for sale or 
sold for use as, or commonly and commercially used as, a fuel in 
spark-ignition, internal combustion engines, which and that when 
tested by the weights and measures division of the department of 
public service meets the sulfur, distillation range, Reid vapor 
pressure, and copper corrosion requirements contained in 
American Society for Testing and Materials (ASTM) specification 
number D-439, "Standard Specification for Automotive Gasoline."  
    For gasoline that is blended with more than one volume 
percent of denatured ethanol, the gasoline portion of the blend 
or the finished gasoline-ethanol blend must meet the sulfur, 
distillation range, Reid vapor pressure, and copper corrosion 
requirements contained in ASTM D-439.  
    For gasoline that is blended with more than one volume 
percent of methanol, the finished gasoline-methanol blend must 
meet the sulfur, distillation range, Reid vapor pressure, and 
copper corrosion requirements contained in ASTM D-439, and must 
have a currently valid fuel/fuel additive waiver by the United 
States Environmental Protection Agency as provided by United 
States Code, title 42, section 7545 the specifications in ASTM 
specification D 439-89. 
    Sec. 39.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
blended with ethanol" means gasoline blended with up to ten 
percent, by volume, agriculturally derived, denatured ethanol.  
The blend must comply with the volatility requirements in Code 
of Federal Regulations, title 40, part 80.  The blend must also 
comply with ASTM specification D 4814-90a, except when subjected 
to a standard distillation test.  For a distillation test, a 
gasoline-ethanol blend is not required to comply with the 
temperature specification at the 50 percent liquid recovery 
point, if the gasoline from which the gasoline-ethanol blend was 
produced complies with all of the distillation specifications. 
    Sec. 40.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [DENATURED ETHANOL.] "Denatured ethanol" means 
ethanol that is to be blended with gasoline, has been 
agriculturally derived, and complies with ASTM specification D 
4806-88.  This includes the requirement that ethanol may be 
denatured only with specified concentrations of unleaded 
gasoline or rubber hydrocarbon solvent as defined in Code of 
Federal Regulations, title 27, parts 211 and 212, as adopted by 
the Bureau of Alcohol, Tobacco and Firearms of the United States 
Treasury Department. 
    Sec. 41.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 3c.  [GASOLINE BLENDED WITH AN OXYGENATE.] "Gasoline 
blended with an oxygenate" means gasoline blended with an 
alcohol or ether, other than denatured ethanol, that is approved 
as an oxygenate by the United States Environmental Protection 
Agency. 
    Sec. 42.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 3d.  [CASINGHEAD, ABSORPTION, CONDENSATION, DRIP, OR 
NATURAL GASOLINE.] "Casinghead gasoline," "absorption gasoline," 
"condensation gasoline," "drip gasoline," and "natural gasoline" 
mean a low-octane, high-volatility, liquid hydrocarbon 
by-product of crude oil extraction and pumping, coal 
gasification, or shipping of natural gas through a pipeline. 
    Sec. 43.  Minnesota Statutes 1990, section 296.01, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEATING FUEL OIL.] "Heating fuel oil" means a 
petroleum distillate, blend of petroleum distillates and 
residuals, or petroleum residual heating fuel which that meets 
the flash point, pour point, water and sediment content, 
distillation, specific gravity, copper corrosion, and sulfur 
content requirements contained in American Society for Testing 
and Materials standard specification number D-396 as amended 
through August 1, 1985 the specifications in ASTM specification 
D 396-90a. 
    Sec. 44.  Minnesota Statutes 1990, section 296.01, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
petroleum distillate or blend of petroleum distillate and 
residual fuels, intended for use as a motor fuel in internal 
combustion diesel engines, that meets the specifications in ASTM 
specification D 975-90.  Diesel fuel must meet the flash point, 
water and sediment content, distillation, sulfur content, and 
copper corrosion requirements contained in American Society for 
Testing and Materials standard specification number D-975 as 
amended through August 1, 1985.  
    Sec. 45.  Minnesota Statutes 1990, section 296.01, 
subdivision 4b, is amended to read: 
    Subd. 4b.  [KEROSENE.] "Kerosene" means a refined petroleum 
distillate consisting of a homogeneous mixture of hydrocarbons 
essentially free of water, inorganic acidic and basic compounds, 
and excessive amounts of particulate contaminants and that meets 
the specifications in ASTM specification D 3699-90.  Kerosene 
must meet the color, sulfur content, distillation, flash point, 
and copper corrosion requirements contained in American Society 
for Testing and Materials standard specification number D-3699 
as amended through August 1, 1985. 
    Sec. 46.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 4c.  [AVIATION TURBINE FUEL, JET FUEL.] "Aviation 
turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
from crude petroleum, natural gasoline, and synthetic 
hydrocarbons, intended for use in aviation turbine engines, and 
that meet the specifications in ASTM specification D 1655-90. 
    Sec. 47.  Minnesota Statutes 1990, section 296.01, is 
amended by adding a subdivision to read: 
    Subd. 4d.  [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 
means fuel that contains mixtures of hydrocarbon oils free of 
inorganic acid and excessive amounts of solid or fibrous foreign 
matter, that is intended for use in nonaviation gas turbine 
engines, and that meets the specifications in ASTM specification 
D 2880-90a. 
    Sec. 48.  Minnesota Statutes 1990, section 296.01, 
subdivision 15, is amended to read: 
    Subd. 15.  [AVIATION GASOLINE.] "Aviation gasoline" means 
any gasoline which that is capable of use for the purpose of 
producing or generating power for propelling internal combustion 
engine aircraft, which that meets the specifications in ASTM 
specification D 910-90, and that either:  
    (1) is invoiced and billed by a producer, manufacturer, 
refiner, or blender to a distributor or dealer, by a distributor 
to a dealer or consumer, or by a dealer to a consumer, as 
"aviation gasoline,"; or 
    (2), whether or not invoiced and billed as provided in 
clause (1), is received, sold, stored, or withdrawn from storage 
by any person, to be used for the purpose of producing or 
generating power for propelling internal combustion engine 
aircraft. 
    Sec. 49.  Minnesota Statutes 1990, section 296.01, 
subdivision 24, is amended to read: 
    Subd. 24.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
alcohol gasoline" means a gasoline gasoline-ethanol blend of up 
to ten percent of which is agriculturally derived fermentation 
ethanol of a purity of at least 99 percent, determined without 
regard to any added denaturants, denatured in conformity with 
one of the approved methods set forth by the United States 
Department of Treasury, Bureau of Alcohol, Tobacco and Firearms, 
and derived from agricultural products, such as potatoes, cereal 
, grains, cheese whey, sugar beets, or forest products or other 
renewable resources, that: 
    (1) meets the specifications in ASTM specification D 
4806-88; and 
    (2) is denatured with unleaded gasoline or rubber 
hydrocarbon solvent as defined in Code of Federal Regulations, 
title 27, parts 211 and 212, as adopted by the Bureau of 
Alcohol, Tobacco and Firearms of the United States Treasury 
Department. 
    Sec. 50.  Minnesota Statutes 1990, section 296.02, 
subdivision 1, is amended to read: 
    296.02 [GASOLINE, EXCISE TAX.] 
    Subdivision 1.  [TAX IMPOSED FOR MOTOR VEHICLE USE.] There 
is imposed an excise tax on gasoline used in producing and 
generating power for propelling motor vehicles used on the 
public highways of this state.  For purposes of this section, 
gasoline is defined in section 296.01, subdivisions 3, 3a, 3c, 
and 3d.  This tax is payable at the times, in the manner, and by 
persons specified in this chapter.  The tax is payable at the 
rate specified in subdivision 1b, subject to the exceptions and 
reductions specified in this section.  
    (a) Notwithstanding any other provision of law to the 
contrary, the tax imposed on special fuel sold by a qualified 
service station may not exceed, or the tax on gasoline delivered 
to a qualified service station must be reduced to, a rate not 
more than three cents per gallon above the state tax rate 
imposed on such products sold by a service station in a 
contiguous state located within the distance indicated in clause 
(b).  
    (b) A "qualifying service station" means a service station 
located within 7.5 miles, measured by the shortest route by 
public road, from a service station selling like product in the 
contiguous state.  
    (c) A qualified service station shall be allowed a credit 
by the supplier or distributor, or both, for the amount of 
reduction computed in accordance with clause (a).  
    A qualified service station, before receiving the credit, 
shall be registered with the commissioner of revenue.  
    Sec. 51.  Minnesota Statutes 1990, section 296.02, 
subdivision 2, is amended to read: 
    Subd. 2.  [GASOLINE TAX IMPOSED FOR AVIATION USE.] Subject 
to the provisions of section 296.18, subdivision 4, there is 
imposed an excise tax, at the rate of five cents per gallon on 
all aviation gasoline received, sold, stored, or withdrawn from 
storage in this state.  Aviation gasoline is defined in section 
296.01, subdivision 15.  This tax is payable at the times, in 
the manner, and by persons specified in sections 296.01 to 
296.27. 
    Sec. 52.  Minnesota Statutes 1990, section 296.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [TAX REDUCTION FOR AGRICULTURAL ALCOHOL 
GASOLINE.] A distributor shall be allowed a credit on each 
gallon of fuel grade alcohol denatured ethanol commercially 
blended with gasoline or blended in a tank truck with gasoline 
on which the tax imposed by subdivision 1 is due and 
payable.  Denatured ethanol is defined in section 296.01, 
subdivision 3b.  After June 30, 1987, the amount of the credit 
for every gallon of fuel-grade alcohol denatured ethanol blended 
with gasoline to produce agricultural alcohol gasoline is as 
follows: 
    (a) For the fiscal year ending June 30, 1987, 25 cents. 
    (b) On and after July 1, 1987, 20 cents. 
    The credit allowed a distributor must not exceed the total 
tax liability under subdivision 1.  The tax credit received by a 
distributor on alcohol denatured ethanol blended with motor 
fuels shall be passed on to the retailer. 
    Sec. 53.  [INSTRUCTION TO REVISOR.] 
    For the next edition of Minnesota Statutes, the revisor of 
statutes shall renumber the definitions, including the 
definitions amended and added by this act, in Minnesota 
Statutes, section 296.01, in alphabetical order and correct any 
references to those subdivisions in Minnesota Statutes to 
conform to the renumbering. 
    Sec. 54.  [REPEALER.] 
    Minnesota Statutes 1990, sections 239.75, subdivisions 3 
and 4; 239.76, as amended by Laws 1991, chapter 302, section 2; 
239.79, subdivisions 1 and 2; 296.01, subdivision 2a; and 
325E.09, are repealed. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 8:21 a.m.

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