1.1                          A bill for an act 
  1.2             relating to agriculture; increasing minimum ethanol 
  1.3             content required for gasoline sold in the state; 
  1.4             establishing a petroleum replacement goal; amending 
  1.5             Minnesota Statutes 2004, section 239.791, subdivision 
  1.6             1, by adding a subdivision; proposing coding for new 
  1.7             law in Minnesota Statutes, chapter 239. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2004, section 239.791, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [MINIMUM ETHANOL CONTENT REQUIRED.] (a) 
  1.12  Except as provided in subdivisions 10 to 14, a person 
  1.13  responsible for the product shall ensure that all gasoline sold 
  1.14  or offered for sale in Minnesota must contain at least 10.0 
  1.15  percent denatured ethanol by volume. 
  1.16     (b) For purposes of enforcing the minimum ethanol 
  1.17  requirement of paragraph (a), a gasoline/ethanol blend will be 
  1.18  construed to be in compliance if the ethanol content, exclusive 
  1.19  of denaturants and permitted contaminants, comprises not less 
  1.20  than 9.2 percent by volume and not more than 10.0 percent by 
  1.21  volume of the blend as determined by an appropriate United 
  1.22  States Environmental Protection Agency or American Society of 
  1.23  Testing Materials standard method of analysis of alcohol/ether 
  1.24  content in motor fuels. 
  1.25     (c) This subdivision expires on January 1, 2012, if 
  1.26  subdivision 1a is effective on that date. 
  2.1      Sec. 2.  Minnesota Statutes 2004, section 239.791, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 1a.  [MINIMUM ETHANOL CONTENT REQUIRED.] (a) Except 
  2.4   as provided in subdivisions 10 to 14, on January 1, 2012, and 
  2.5   thereafter, a person responsible for the product shall ensure 
  2.6   that all gasoline sold or offered for sale in Minnesota must 
  2.7   contain at least 20 percent denatured ethanol by volume. 
  2.8      (b) For purposes of enforcing the minimum ethanol 
  2.9   requirement of paragraph (a), a gasoline/ethanol blend will be 
  2.10  construed to be in compliance if the ethanol content, exclusive 
  2.11  of denaturants and permitted contaminants, comprises not less 
  2.12  than 18.4 percent by volume and not more than 20 percent by 
  2.13  volume of the blend as determined by an appropriate United 
  2.14  States Environmental Protection Agency or American Society of 
  2.15  Testing Materials standard method of analysis of alcohol content 
  2.16  in motor fuels. 
  2.17     (c) No motor fuel, as defined under section 296A.01, 
  2.18  subdivision 33, shall be deemed to be a defective product, nor 
  2.19  any manufacturer of motor fueled engines be liable for 
  2.20  warranties or repairs thereto, if the motor fuel has not been 
  2.21  prohibited from use by the federal government. 
  2.22     (d) This subdivision expires on December 31, 2010, if by 
  2.23  that date: 
  2.24     (1) the commissioner of agriculture certifies and publishes 
  2.25  the certification in the State Register that at least 20 percent 
  2.26  of the volume of gasoline sold in the state is denatured 
  2.27  ethanol; or 
  2.28     (2) federal approval has not been granted for the use of 
  2.29  E20 as gasoline. 
  2.30     Sec. 3.  [239.7911] [PETROLEUM REPLACEMENT PROMOTION.] 
  2.31     Subdivision 1.  [PETROLEUM REPLACEMENT GOAL.] The petroleum 
  2.32  replacement goal of the state of Minnesota is that at least 20 
  2.33  percent of the liquid fuel sold in the state is derived from 
  2.34  renewable sources by December 31, 2015. 
  2.35     Subd. 2.  [PROMOTION OF RENEWABLE LIQUID FUELS.] (a) The 
  2.36  commissioner of agriculture, in consultation with the 
  3.1   commissioners of commerce and the Pollution Control Agency, 
  3.2   shall identify and implement activities necessary for the 
  3.3   widespread use of renewable liquid fuels in the state.  
  3.4   Beginning November 1, 2005, and continuing through 2015, the 
  3.5   commissioners, or their designees, shall work with 
  3.6   representatives from the renewable fuels industry, petroleum 
  3.7   retailers, refiners, automakers, small engine manufacturers, and 
  3.8   other interested groups, to develop annual recommendations for 
  3.9   administrative and legislative action. 
  3.10     (b) The activities of the commissioners under this 
  3.11  subdivision shall include, but not be limited to: 
  3.12     (1) developing recommendations for incentives for retailers 
  3.13  to install equipment necessary for dispensing renewable liquid 
  3.14  fuels to the public; 
  3.15     (2) obtaining federal approval for the use of E20 as 
  3.16  gasoline; 
  3.17     (3) developing recommendations for ensuring that motor 
  3.18  vehicles and small engine equipment have access to an adequate 
  3.19  supply of fuel; 
  3.20     (4) working with the owners and operators of large 
  3.21  corporate automotive fleets in the state to increase their use 
  3.22  of renewable fuels; and 
  3.23     (5) working to maintain an affordable retail price for 
  3.24  liquid fuels. 
  3.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  3.26  following final enactment.