Minnesota Session Laws - 2005, Regular Session

                              CHAPTER 52-S.F.No. 4 
                  An act relating to agriculture; increasing minimum 
                  ethanol content required for gasoline sold in the 
                  state; establishing a petroleum replacement goal; 
                  requiring studies and reports; amending Minnesota 
                  Statutes 2004, section 239.791, subdivision 1, by 
                  adding a subdivision; proposing coding for new law in 
                  Minnesota Statutes, chapter 239. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 239.791, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MINIMUM ETHANOL 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 10.0 
        percent denatured ethanol by volume. 
           (b) For purposes of enforcing the minimum ethanol 
        requirement of paragraph (a), a gasoline/ethanol blend will be 
        construed to be in compliance if the ethanol content, exclusive 
        of denaturants and permitted contaminants, 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 of alcohol/ether 
        content in motor fuels. 
           (c) The provisions of this subdivision are suspended during 
        any period of time that subdivision 1a, paragraph (a), is in 
        effect.  
           Sec. 2.  Minnesota Statutes 2004, section 239.791, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [MINIMUM ETHANOL CONTENT REQUIRED.] (a) Except 
        as provided in subdivisions 10 to 14, on August 30, 2013, and 
        thereafter, a person responsible for the product shall ensure 
        that all gasoline sold or offered for sale in Minnesota must 
        contain at least 20 percent denatured ethanol by volume. 
           (b) For purposes of enforcing the minimum ethanol 
        requirement of paragraph (a), a gasoline/ethanol blend will be 
        construed to be in compliance if the ethanol content, exclusive 
        of denaturants and permitted contaminants, comprises not less 
        than 18.4 percent by volume and not more than 20 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 of alcohol content 
        in motor fuels. 
           (c) 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 paragraph (a) under any 
        theory of liability except for simple or willful negligence or 
        fraud.  This paragraph does not preclude an action for 
        negligent, fraudulent, or willful acts.  This paragraph 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. 
           (d) This subdivision expires on December 31, 2010, if by 
        that date: 
           (1) the commissioner of agriculture certifies and publishes 
        the certification in the State Register that at least 20 percent 
        of the volume of gasoline sold in the state is denatured 
        ethanol; or 
           (2) federal approval has not been granted for the use of 
        E20 as gasoline.  The United States Environmental Protection 
        Agency's failure to act on an application shall not be deemed 
        approval of the use of E20, or a waiver under section 211(f)(4) 
        of the Clean Air Act, United States Code, title 42, section 
        7545, subsection (f), paragraph (4).  
           Sec. 3.  [239.7911] [PETROLEUM REPLACEMENT PROMOTION.] 
           Subdivision 1.  [PETROLEUM REPLACEMENT GOAL.] The petroleum 
        replacement goal of the state of Minnesota is that at least 20 
        percent of the liquid fuel sold in the state is derived from 
        renewable sources by December 31, 2015. 
           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 for the 
        widespread use of renewable liquid fuels in the state.  
        Beginning November 1, 2005, and continuing through 2015, the 
        commissioners, or their designees, shall work with 
        representatives from the renewable fuels industry, petroleum 
        retailers, refiners, automakers, small engine manufacturers, and 
        other interested groups, to 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 incentives for retailers 
        to install equipment necessary for dispensing renewable liquid 
        fuels to the public; 
           (2) obtaining federal approval for the use of E20 as 
        gasoline; 
           (3) developing recommendations for ensuring that 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; and 
           (5) working to maintain an affordable retail price for 
        liquid fuels. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 4.  [REPORT ON E20 FUEL.] 
           The commissioner of agriculture, in consultation with the 
        commissioners of employment and economic development and the 
        Pollution Control Agency, shall review the information and data 
        collected in the evaluation of any federal waiver request for 
        the use of E20 fuel in Minnesota.  The commissioner shall use 
        existing budgetary and staff resources in conducting the 
        review.  The review must include: 
           (1) issues involving the use of E20 fuel if such fuel is 
        mandated in Minnesota; 
           (2) effects of E20 on development of Minnesota's ethanol 
        industry; and 
           (3) effects of E20 on Minnesota consumers. 
           The commissioner shall present an initial report to the 
        legislative committees having jurisdiction over agriculture and 
        environment policy and finance on the findings of the review to 
        the legislature by January 15, 2009, and present an updated 
        report to those committees on January 15, 2011. 
           Sec. 5.  [SMALL ENGINE REPORT.] 
           The commissioner of commerce, in consultation with the 
        commissioner of agriculture, shall: 
           (1) solicit information from national experts and 
        stakeholders, which may include the United States Consumer 
        Product Safety Commission, and review scientific studies on the 
        use of E20 gasoline in motorcycles, outboard engines, 
        snowmobiles, lawn and garden products, and other consumer 
        equipment powered by small spark-ignited engines; 
           (2) inventory and assess the availability of gasoline not 
        blended with ethanol throughout the state for exempt uses under 
        Minnesota Statutes, section 239.791, subdivisions 10 to 14, and 
        make recommendations for addressing those areas in which the 
        commissioner finds unblended gasoline is not readily available 
        to consumers; 
           (3) develop recommendations for notifying consumers as to 
        the availability of gasoline not blended with ethanol in the 
        state, and the appropriate use of gasoline blended with ethanol 
        in small spark-ignited engines found in motorcycles, outboard 
        engines, snowmobiles, and lawn and garden products; and 
           (4) by January 15, 2008, report to the agriculture and 
        environmental policy committees of the house of representatives 
        and senate on information and activities required under clauses 
        (1) to (3). 
           Presented to the governor May 9, 2005 
           Signed by the governor May 10, 2005, 2:45 p.m.