1.1                          A bill for an act 
  1.2             relating to motor fuels; updating petroleum 
  1.3             specifications; amending Minnesota Statutes 1996, 
  1.4             sections 239.761; and 239.792. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 239.761, is 
  1.7   amended to read: 
  1.8      239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 
  1.9      Subdivision 1.  [APPLICATION.] A person responsible for the 
  1.10  product must meet the specifications in ~~subdivisions 3 to~~ 
  1.11  ~~12~~ this section.  The specifications apply to petroleum products 
  1.12  processed, held, stored, imported, transferred, distributed, 
  1.13  offered for distribution, offered for sale or use, or sold in 
  1.14  Minnesota. 
  1.15     Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
  1.16  AGRICULTURE.] The petroleum product specifications in this 
  1.17  section are intended to match the definitions and specifications 
  1.18  in sections 41A.09 and 296.01.  Petroleum products named in 
  1.19  ~~subdivisions 3 to 12~~ this section are defined in section 296.01. 
  1.20     Subd. 3.  [GASOLINE.] Gasoline that is not blended with 
  1.21  ethanol must not be contaminated with water or other impurities 
  1.22  and must comply with ASTM specification ~~D 4814-92c~~ D 4814-96.  
  1.23  Gasoline that is not blended with ethanol must also comply with 
  1.24  the volatility requirements in Code of Federal Regulations, 
  1.25  title 40, part 80.  After gasoline is sold, transferred, or 
  2.1   otherwise removed from a refinery or terminal, a person 
  2.2   responsible for the product: 
  2.3      (1) may blend the gasoline with agriculturally derived 
  2.4   ethanol as provided in subdivision 4; 
  2.5      (2) shall not blend the gasoline with any oxygenate other 
  2.6   than denatured, agriculturally derived ethanol; 
  2.7      (3) shall not blend the gasoline with other petroleum 
  2.8   products that are not gasoline or denatured, agriculturally 
  2.9   derived ethanol; 
  2.10     (4) shall not blend the gasoline with products commonly and 
  2.11  commercially known as casinghead gasoline, absorption gasoline, 
  2.12  condensation gasoline, drip gasoline, or natural gasoline; and 
  2.13     (5) may blend the gasoline with a detergent additive, an 
  2.14  antiknock additive, or an additive designed to replace 
  2.15  tetra-ethyl lead, that is registered by the EPA. 
  2.16     Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] Gasoline may be 
  2.17  blended with up to ten percent, by volume, agriculturally 
  2.18  derived, denatured ethanol that complies with the requirements 
  2.19  of subdivision 5.  A gasoline-ethanol blend must: 
  2.20     (1) comply with the volatility requirements in Code of 
  2.21  Federal Regulations, title 40, part 80; 
  2.22     (2) comply with ASTM specification ~~D 4814-90a~~ D 4814-96, or 
  2.23  the gasoline base stock from which a gasoline-ethanol blend was 
  2.24  produced must comply with ASTM specification ~~D 4814-90a~~ D 
  2.25  4814-96; and 
  2.26     (3) not be blended with casinghead gasoline, absorption 
  2.27  gasoline, condensation gasoline, drip gasoline, or natural 
  2.28  gasoline after the gasoline-ethanol blend has been sold, 
  2.29  transferred, or otherwise removed from a refinery or terminal. 
  2.30     Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
  2.31  be blended with gasoline must be agriculturally derived and must 
  2.32  comply with ASTM specification ~~D 4806-88~~ D 4806-95b.  This 
  2.33  includes the requirement that ethanol may be denatured only as 
  2.34  specified in Code of Federal Regulations, title 27, parts 20 and 
  2.35  21. 
  2.36     Subd. 6.  [GASOLINE BLENDED WITH AN OXYGENATE.] Gasoline 
  3.1   that is blended with an oxygenate, other than denatured ethanol, 
  3.2   must comply with ASTM specification ~~D 4814-90a~~ D 4814-96.  
  3.3   Oxygenates, other than denatured ethanol, must not be blended 
  3.4   into gasoline after the gasoline has been sold, transferred, or 
  3.5   otherwise removed from a refinery or terminal. 
  3.6      Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
  3.7   with ASTM specification ~~D 396-90a~~ D 396-96. 
  3.8      Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
  3.9   with ASTM specification ~~D 975-90~~ D 975-96a. 
  3.10     Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
  3.11  specification ~~D 3699-90~~ D 3699-96a. 
  3.12     Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
  3.13  comply with ASTM specification ~~D 910-90~~ D 910-96. 
  3.14     Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
  3.15  turbine fuel and jet fuel must comply with ASTM specification ~~D~~ 
  3.16  ~~1655-90~~ D 1655-96c. 
  3.17     Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
  3.18  nonaviation gas turbine engines must comply with ASTM 
  3.19  specification ~~D 2880-90a~~ D 2880-96a. 
  3.20     Subd. 13.  [E85.] A blend of ethanol and gasoline, 
  3.21  containing at least 60 percent ethanol and not more than 85 
  3.22  percent ethanol, produced for use as a motor fuel in alternative 
  3.23  fuel vehicles as defined in section 296.01, subdivision 5, must 
  3.24  comply with ASTM specification D 5798-96. 
  3.25     Subd. 14.  [M85.] A blend of methanol and gasoline, 
  3.26  containing at least 85 percent methanol, produced for use as a 
  3.27  motor fuel in alternative fuel vehicles as defined in section 
  3.28  296.01, subdivision 5, must comply with ASTM specification D 
  3.29  5797-96. 
  3.30     Sec. 2.  Minnesota Statutes 1996, section 239.792, is 
  3.31  amended to read: 
  3.32     239.792 [GASOLINE OCTANE.] 
  3.33     Subdivision 1.  [GASOLINE OCTANE; DISCLOSURE.] A 
  3.34  manufacturer, hauler, blender, agent, jobber, consignment agent, 
  3.35  importer, or distributor who sells, delivers, or distributes 
  3.36  gasoline or gasoline-oxygenate blends, shall provide, at the 
  4.1   time of delivery, a bill of lading or shipping manifest to the 
  4.2   person who receives the gasoline.  The bill or manifest must 
  4.3   state the minimum octane of the gasoline delivered.  The stated 
  4.4   octane number must be the average of the "motor method" octane 
  4.5   number and the "research method" octane number as determined by 
  4.6   the test methods in ASTM specification ~~D 439-89 or D 4814-90a~~ D 
  4.7   4814-96, or by a test method adopted by department rule. 
  4.8      Subd. 2.  [GASOLINE OCTANE; DISPENSER LABELING.] A person 
  4.9   responsible for the product shall clearly, conspicuously, and 
  4.10  permanently label each gasoline dispenser that is used to sell 
  4.11  gasoline or gasoline-oxygenate blends at retail or to dispense 
  4.12  gasoline or gasoline-oxygenate blends into the fuel supply tanks 
  4.13  of motor vehicles, with the minimum octane of the gasoline 
  4.14  dispensed.  The label must meet the following requirements: 
  4.15     (a) The octane number displayed on the label must represent 
  4.16  the average of the "motor method" octane number and the 
  4.17  "research method" octane number as determined by the test 
  4.18  methods in ASTM specification ~~D 439-89 or D 4814-90a~~ D 4814-96, 
  4.19  or by a test method adopted by department rule. 
  4.20     (b) The label must be at least 2-1/2 inches high and three 
  4.21  inches wide, with a yellow background, black border, and black 
  4.22  figures and letters. 
  4.23     (c) The number representing the octane of the gasoline must 
  4.24  be at least one inch high. 
  4.25     (d) The label must include the words "minimum octane" and 
  4.26  the term "(R+M)/2" or "(RON+MON)/2."