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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 189-S.F.No. 2453 
                  An act relating to motor fuels; establishing testing 
                  and inspection criteria for liquefied petroleum 
                  gas-measuring equipment; increasing petroleum 
                  inspection fee and appropriating money from that 
                  increase; regulating oxygenated, nonoxygenated, and 
                  blended gasolines; abolishing a fee and certain 
                  requirements and powers of Department of Commerce 
                  relating to utility measuring equipment; amending 
                  Minnesota Statutes 2002, sections 239.011, by adding a 
                  subdivision; 239.101, subdivision 3; 239.791, 
                  subdivision 12, by adding a subdivision; repealing 
                  Minnesota Statutes 2002, sections 239.12; 239.25. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 239.011, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 
        and inspection requirements for liquefied petroleum gas 
        measuring equipment, as set forth in section 239.10, subdivision 
        3, shall be deemed to have been met by an owner or seller who 
        has testing and inspection performed annually in compliance with 
        this subdivision.  The testing and inspection must meet the 
        following requirements: 
           (1) all equipment subject to inspection and testing 
        requirements must be inspected and tested annually; 
           (2) inspection testing must only be done by persons who 
        have demonstrated to the director that they are competent to 
        inspect and test liquefied petroleum gas measuring equipment.  
        Competency may be established by passage of a competency 
        examination, which the director must establish, or by other 
        recognized credentialing processes approved by the director.  
        Persons taking tests established by the director may be charged 
        for the costs of the testing procedure; 
           (3) testing and inspection procedures must comply with 
        inspection protocol, which must be established by the director.  
        The director may use existing protocol or recognize any other 
        scientifically established and recognized protocol; 
           (4) persons who inspect or test liquefied petroleum gas 
        measuring equipment must use testing equipment that meets any 
        specifications issued by the director; 
           (5) equipment used for testing and inspection must be 
        submitted to the director for calibration by the division 
        whenever ordered by the director; and 
           (6) all inspectors, equipment, and inspection protocol must 
        comply with all relevant requirements of Minnesota Statutes, 
        department rules, and written procedures issued by the director. 
           (b) Owners or sellers of liquefied petroleum gas may 
        perform their own tests and inspections or have employees do so 
        as long as they meet the requirements of this subdivision.  
        Persons performing inspection and testing may also perform 
        repairs and maintenance on inspected equipment if authorized by 
        the owner.  However, they shall not be allowed to take equipment 
        out of service.  
           (c) Inspectors shall tag meters that fail the testing 
        process as "out of tolerance."  For equipment that has passed 
        inspection, the inspector shall provide to the owner or seller a 
        seal indicating that the equipment has been inspected and the 
        date of the inspection.  Whenever an inspector issues a seal to 
        an owner or seller, the inspector shall submit to the director 
        written verification that the equipment was tested by procedures 
        and testing equipment meeting the requirements of this 
        subdivision.  The director shall issue seals (stickers) to 
        inspectors for the purposes of this subdivision.  The issuance 
        of a seal to an owner or seller establishes only that the 
        equipment was inspected by a certified inspector using qualified 
        equipment and procedures, and that the equipment was found to be 
        within allowable tolerance on the date tested.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 2002, section 239.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
        is imposed (1) on petroleum products when received by the first 
        licensed distributor, and (2) on petroleum products received and 
        held for sale or use by any person when the petroleum products 
        have not previously been received by a licensed distributor.  
        The petroleum inspection fee is 85 cents $1 for every 1,000 
        gallons received.  The commissioner of revenue shall collect the 
        fee.  The revenue from the fee must first be applied to cover 
        the amounts appropriated.  Fifteen cents of the inspection fee 
        must be deposited in an account in the special revenue fund and 
        is appropriated to the commissioner of commerce for the cost of 
        petroleum product quality inspection expenses, and for the 
        inspection and testing of petroleum product measuring equipment, 
        and for petroleum supply monitoring under chapter 216C.  The 
        remainder of the fee must be deposited in the general fund. 
           (b) The commissioner of revenue shall credit a person for 
        inspection fees previously paid in error or for any material 
        exported or sold for export from the state upon filing of a 
        report as prescribed by the commissioner of revenue. 
           (c) The commissioner of revenue may collect the inspection 
        fee along with any taxes due under chapter 296A. 
           Sec. 3.  Minnesota Statutes 2002, section 239.791, 
        subdivision 12, is amended to read: 
           Subd. 12.  [EXEMPTION FOR COLLECTOR VEHICLE AND OFF-ROAD 
        USE.] (a) A person responsible for the product may offer for 
        sale, sell, or dispense at a retail gasoline station for use in 
        collector vehicles or vehicles eligible to be licensed as 
        collector vehicles, off-road vehicles, motorcycles, boats, 
        snowmobiles, or small engines, gasoline that is not oxygenated 
        in accordance with subdivision 1 if the person meets the 
        conditions in paragraphs (b) to (e).  If the nonoxygenated 
        gasoline is for use in a small engine, it must be dispensed into 
        a can with a capacity of six or fewer gallons. 
           (b) The nonoxygenated gasoline must be unleaded premium 
        grade as defined in section 239.751, subdivision 4. 
           (c) No more than one storage tank on the premises of the 
        retail gasoline station may be used for storage of the 
        nonoxygenated gasoline offered for sale, sold, or dispensed by 
        the station. 
           (d) The pump stands must be posted with a permanent notice 
        stating:  "NONOXYGENATED GASOLINE.  FOR USE IN COLLECTOR 
        VEHICLES OR VEHICLES ELIGIBLE TO BE LICENSED AS COLLECTOR 
        VEHICLES, OFF-ROAD VEHICLES, MOTORCYCLES, BOATS, SNOWMOBILES, OR 
        SMALL ENGINES ONLY." 
           (e) For a retail gasoline station located in the county of 
        Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, 
        Washington, or Wright, a person responsible for the product must 
        annually register with the director, on forms provided by the 
        director, an intent to sell nonoxygenated gasoline during the 
        period of October 1 through January 31.  Such person must 
        register on or before August 1 of each year, and must report to 
        the director before April 1 of the following year the total 
        number of gallons of nonoxygenated premium grade gasoline sold 
        during the period of October 1 through January 31.  Data 
        submitted to the department under this paragraph shall be 
        considered nonpublic data as defined in section 13.02, 
        subdivision 13.  This notice must be posted at least two feet 
        above the ground.  A retail gasoline station that sells 
        nonoxygenated premium gasoline as defined in section 239.791, 
        subdivision 15, must register every two years with the director, 
        or an entity appointed by the director, on forms approved by the 
        director, the total amount of nonoxygenated premium gasoline 
        sold annually. 
           Sec. 4.  Minnesota Statutes 2002, section 239.791, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [EXEMPTION FOR CERTAIN BLEND PUMPS.] A person 
        responsible for the product, who offers for sale, sells, or 
        dispenses nonoxygenated premium gasoline under one or more of 
        the exemptions in subdivisions 10 to 14, may sell, offer for 
        sale, or dispense oxygenated gasoline that contains less than 
        the minimum amount of ethanol required under subdivision 1 if 
        all of the following conditions are met: 
           (1) the blended gasoline has an octane rating of 88 or 
        greater; 
           (2) the gasoline is a blend of oxygenated gasoline meeting 
        the requirements of subdivision 1 with nonoxygenated premium 
        gasoline; 
           (3) the blended gasoline contains not more than ten percent 
        nonoxygenated premium gasoline; 
           (4) the blending of oxygenated gasoline with nonoxygenated 
        gasoline occurs within the gasoline dispenser; and 
           (5) the gasoline station at which the gasoline is sold, 
        offered for sale, or delivered is equipped to store gasoline in 
        not more than two storage tanks.  
           This subdivision applies only to those persons who meet the 
        conditions in clauses (1) through (5) on the effective date of 
        this act and have registered with the director within three 
        months of the effective date of this act. 
           Sec. 5.  [REPEALER.] 
           Minnesota Statutes 2002, sections 239.12 and 239.25, are 
        repealed. 
           Presented to the governor May 10, 2004 
           Signed by the governor May 12, 2004, 5:15 p.m.