Bill Text: MI SB1171 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Energy: gas and oil; certain standards under the motor fuels quality act; update. Amends secs. 2, 3, 4, 4a, 5, 6, 7, 10a & 10d of 1984 PA 44 (MCL 290.642 et seq.); adds secs. 4b, 7a & 7b & repeals sec. 5a of 1984 PA 44 (MCL 290.645a).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-12-13 - Referred To Committee On Government Operations [SB1171 Detail]
Download: Michigan-2023-SB1171-Engrossed.html
Substitute For
SENATE BILL NO. 1171
A bill to amend 1984 PA 44, entitled
"Motor fuels quality act,"
by amending sections 2, 3, 4, 4a, 5, 6, 7, 10a, and 10d (MCL 290.642, 290.643, 290.644, 290.644a, 290.645, 290.646, 290.647, 290.650a, and 290.650d), sections 2, 4a, 5, and 7 as amended by 2006 PA 271, section 3 as amended by 2008 PA 313, section 4 as amended by 2003 PA 116, section 6 as amended by 2018 PA 308, section 10a as amended by 2002 PA 13, and section 10d as amended by 2006 PA 104, and by adding sections 4b, 7a, and 7b; and to repeal acts and parts of acts.
the people of the state of michigan enact:
(a) "Additive" means any substance in gasoline other than gasoline but does not include approved blending components, other than lead, sodium, and phosphate components, introduced at refineries or terminals as octane or product quality enhancers in quantities of less than 1% of volume.
(b) "Alcohol" means a volatile, flammable liquid that has the general formula CnH2n+1OH, that is used or sold for the purpose of blending or mixing with gasoline for use in motor vehicles, and that is commonly or commercially known or sold as an alcohol, including ethanol or methanol.
(c) "Antiknock index" or "AKI" means an index number arrived at by adding the motor octane number and the research octane number, then dividing by 2.
(d) (b) "American society for testing and materials" "ASTM international" means an the international nonprofit scientific, and educational, society devoted to and technical organization founded for the promotion of knowledge of the materials of engineering and the standardization of specification and methods of testing and formerly known as the American society for testing and materials.
(c) "Antiknock index" or "AKI" means an index number arrived at by adding the motor octane number and the research octane number, then dividing by 2.
(e) (d) "Biodiesel" means a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, and, in accordance with standards specified by the American society for testing and materials, ASTM international, designated B100, and meeting the requirements of D-6751, as approved by the department.
(f) (e) "Biodiesel blend" means a fuel comprised of a blend of biodiesel fuel with petroleum-based diesel fuel, suitable for use as a fuel in a compression-ignition internal combustion diesel engine.
(g) "Biomass-based diesel" means a diesel fuel substitute produced from nonpetroleum renewable resources and includes fuel derived from animal wastes, including animal fat and poultry wastes and other waste materials, or from solid waste, sludge, and oils derived from municipal wastewater. Biomass-based diesel does not include biodiesel.
(h) (f) "Blender" means a person who as an individual or through his or her that person's agent adds an oxygenate to a gasoline.
(i) (g) "Bulk purchaser-end user" means a person who is an ultimate consumer of gasoline and receives delivery of gasoline into a storage tank of at least 550-gallon capacity substantially under his or her that person's control.
(j) (h) "CARB" means the California air resources board.
(k) "Compressed natural gas" means methane stored at a high pressure that is used as a motor fuel.
(l) "Cosolvent" means an alcohol, other than ethanol or methanol, that is blended with either ethanol or methanol, or both, to minimize phase separation in gasoline.
(m) (i) "Delivery vessel" means a tank truck, tank equipped trailer, or a similar vessel used for the delivery of gasoline to a dispensing facility.
(n) (j) "Department" means the department of agriculture and rural development.
(o) (k) "Diesel fuel" means any liquid other than gasoline that is suitable for use as a fuel or a component of a fuel in a compression-ignition internal combustion diesel engine.
(p) (l) "Director" means the director of the department of agriculture or his or her the director's authorized representative.
(q) (m) "Dispensing facility" means a site used for gasoline refueling.
(r) (n) "Dispensing unit" means a device designed for the delivery of gasoline in which 1 nozzle equates to 1 dispensing unit.
(s) (o) "Distributor" means a person who purchases, transports, or stores or causes the transportation or storage of gasoline at any point between a gasoline refinery and a retail outlet or bulk purchaser-end user facility.
(t) (p) "E.P.A." means the United States environmental protection agency.Environmental Protection Agency.
(u) "Ethanol" means ethyl alcohol, a flammable liquid having the formula C2H5OH that is used or sold for the purpose of blending or mixing with gasoline for use in motor vehicles.
(v) "Ethanol flex fuel" means an alcohol-based fuel.
(w) (q) "Gasoline" means a volatile mixture of liquid hydrocarbons generally containing small amounts of additives suitable for use in spark-ignition internal combustion engines, and commonly or commercially known or sold as gasoline.
(x) (r) "Hydrogen fuel" means a substance containing the chemical formula H-->subscript<--2-->subscript<-- H2 that exists as a colorless, odorless, and highly flammable gas, except at low cryogenic temperatures or when highly compressed, and that is gaseous or liquefied and is suitable for use in a fuel cell or hydrogen fuel vehicle.
(y) (s) "Leak" means liquid or vapor loss from the gasoline dispensing system or stage I vapor-recovery system as determined by visual inspection or functional testing.
(z) "Methanol" means methyl alcohol, a flammable liquid having the formula CH3OH that is used or sold for the purpose of blending or mixing with gasoline for use in motor vehicles.
(aa) (t) "Modification" means any change, removal, or addition, other than an identical replacement, of any component contained within a stage I vapor-recovery system. The resultant modification must constitute an approved vapor-recovery system.
(bb) "Motor fuel" means a fuel suitable for use in a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle to operate on public roadways or waterways. Motor fuel includes, but is not limited to, diesel fuel, ethanol flex fuel, gasoline, biodiesel, biodiesel blends, and hydrogen fuel.
(cc) "Motor fuel storage tank" means a stationary storage system used for motor fuel.
(dd) (u) "Motor octane number" or "MON" means a knock characteristic of gasoline determined by use of standard procedures on a motor engine.
(ee) (v) "Operator" means a person who owns, leases, operates, manages, supervises, or controls, directly or indirectly, a gasoline-dispensing facility.
(ff) (w) "Oxygenate" means an oxygen-containing, ashless, organic compound, such as alcohol or ether, that may be used as fuel or fuel supplement.
(gg) (x) "Person" means an individual, sole proprietorship, partnership, corporation, association, or other legal entity.
(hh) "PSI" means pounds per square inch.
(ii) (y) "Refiner" means a person who owns, leases, operates, controls, or supervises a refinery.
(jj) (z) "Refinery" means a plant at which gasoline is produced.
(kk) "Reformulated gasoline" means gasoline that fully satisfies the federal specifications for reformulated gasoline under 42 USC 7545.
(ll) (aa) "Research octane number" or "RON" means a knock characteristic of gasoline determined by use of standard procedures on a research engine.
(mm) (bb) "Retail dealer" means a person who owns, leases, operates, controls, or supervises a retail outlet.
(nn) (cc) "Retail outlet" means an establishment at which motor fuel is sold or offered for sale to the public.
(oo) (dd) "Rule" means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(pp) (ee) "Stage I vapor-recovery system" means a vapor tight collection system that is approved by the department and is designed to capture the gasoline vapors displaced during delivery into a stationary storage tank and to return not less than 90% of the displaced vapors to the delivery vessel.
(qq) "Vapor pressure" means the vapor pressure of gasoline or gasoline oxygenate blends as determined by either of the following ASTM international test methods:
(i) D5191-22, "Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method)" (2022).
(ii) D5482-20a, "Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method-Atmospheric)" (2020).
Sec. 3. (1) The director shall establish standards pursuant to this act to ensure the purity and quality of gasoline and diesel fuel sold or offered for sale in this state.
(2) The director shall establish standards for the amount and type of additives allowed to be included in gasoline and diesel fuel.
(1) Except as otherwise provided in this section, or until a more recent standard is adopted under subsection (6), the following ASTM international standards apply to gasoline, ethanol flex fuel, fuels containing ethanol, diesel fuel, biodiesel, and biodiesel blends, as applicable, that are sold or offered for retail sale in this state:
(a) D4806-21a, "Standard Specification for Denatured Fuel Ethanol for Blending with Gasoline for Use as Automotive Spark-Ignition Engine Fuel" (2021).
(b) D4814-24a, "Standard Specification for Automotive Spark-Ignition Engine Fuel" (2024).
(c) D5798-21, "Standard Specification for Ethanol Fuel Blends for Flexible-Fuel Automotive Spark-Ignition Engines" (2021).
(d) D6751-24, "Standard Specification for Biodiesel Fuel Blend-stock (B100) for Middle Distillate Fuels" (2024).
(e) D975-24a, "Standard Specification for Diesel Fuel" (2024).
(f) D7467-23, "Standard Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20)" (2023).
(2) If gasoline is blended with ethanol, the ethanol must meet the requirements of ASTM international standard D4806-21a and the blend must meet the requirements of ASTM international standard D4814-24a, except that the maximum vapor pressure may exceed the limits in ASTM international standard D4814-24a, by not more than any of the following:
(a) 1.0 pound per square inch for blends containing 9% to 15% ethanol by volume from June 1 through September 15.
(b) 1.0 pound per square inch for blends containing 1% or more ethanol by volume for volatility classes A, B, C, and D from September 16 through May 31.
(c) 0.5 pound per square inch for blends containing 1% or more ethanol by volume for volatility class E from September 16 through May 31.
(3) The director shall establish standards for the grading of gasoline, including, but not limited to, subregular with a minimum 85 AKI, all of the following:
(a) regular Regular with a minimum 87 87.0 AKI and a minimum 82 82.0 MON. , midgrade
(b) Midgrade 88 with a minimum 88 88.0 AKI and a minimum 82 82.0 MON. , midgrade
(c) Midgrade 89 with a minimum 89 89.0 AKI and a minimum 83 83.0 MON. , premium
(d) Premium 90 with a minimum 90 90.0 AKI. , premium
(e) Premium 91 with a minimum 91 91.0 AKI. , premium
(f) Premium 92 with a minimum 92 92.0 AKI. , premium
(g) Premium 93 with a minimum 93 93.0 AKI. , and premium
(h) Premium 94 with a minimum 94 94.0 AKI.
(4) Special grades of motor fuel may be offered for sale if listed with and approved by the department. To apply for listing, the refiner or blender shall provide the department with the motor fuel brand name, the grade specifications, and a copy of the complete test results for all applicable standards specified in this act and others as required by the department. All of the following apply to a listing described in this subsection:
(a) All motor fuels that do not meet the ASTM international standards listed in subsection (1) must be registered with the director on forms prescribed by the director not less than 30 days before the registrant engages in sales. The registration form must include all of the following information for the registrant:
(i) Business name and all business addresses.
(ii) Mailing address if different from the business address.
(iii) The type of legal entity that owns the distributor or retail dealer, including, but not limited to, an individual, partnership, association, trust, corporation, or any other legal entity or combination of legal entities.
(iv) An authorized signature, title, and date for each registration.
(v) The product brand name and product description.
(vi) A product specification form approved by the department.
(vii) If the motor fuel is marketed under a waiver granted by the E.P.A., the registration must include the regulatory citation number or other acceptable proof of a valid waiver.
(viii) If requested by the department, a complete list of names of businesses to which the product is being delivered or from which the product is being offered for sale.
(b) Registration is subject to annual renewal and expires 1 year from the date of issuance. All previous listings and registrations with the department are rescinded 30 days after the effective date of the amendatory act that added this subsection.
(c) Reregistration is required not less than 30 days before any changes are made to the information described in subdivision (a).
(d) The director may decline to register any product that actually or by implication would deceive or tend to deceive a purchaser as to the product's identity.
(5) (4) The director shall establish standards adopt requirements for vapor pressure as specified by the American society for testing and materials, by adopting the ASTM international standards listed in subsection (1), except as otherwise required to conform to federal or state law. Notwithstanding anything to the contrary in section 10d, the director shall establish the vapor pressure as 9.0 pounds per square inch (psi) for retail outlets during the period beginning June 1 through September 15 of each year, except for dispensing facilities in counties where the director establishes the vapor pressure as 7.0 psi. or 7.8 psi in the year 2007 and thereafter. As used in this act, "vapor pressure" means the vapor pressure of gasoline or gasoline oxygenate blend as determined by ASTM test method D6378 or D5191 or an ASTM method approved by the department.
(6) (5) In establishing additive and grading standards the The director shall adopt the latest standards for gasoline established by the American society for testing and materials ASTM international and shall adopt the latest standards for gasoline established by federal law or regulation. The standards established by the director shall not prohibit a gasoline blend that is permitted by a valid waiver granted by the United States environmental protection agency E.P.A. pursuant to the fuel or fuel additive waiver in section 211(f)(4) of part A of title II of the clean air act, 42 USC 7545, and the ethanol waiver of 1.0 psi in section 211(h)(4) of part A of title II of the clean air act, 42 USC 7545, if the gasoline blend meets all of the conditions set forth in the waiver. Beginning June 1, 2003, the The director shall not permit the use of the additive methyl tertiary butyl ether (MTBE) in this state.
(6) The director shall establish standards pursuant to this act to ensure the purity and quality of diesel fuel sold or offered for sale in this state. No later than June 1, 2009, the director shall make available for public comment proposed standards to ensure the purity and quality of diesel fuel that is biodiesel or a biodiesel blend, including, but not limited to, a biodiesel blend designated as B20.
(7) Any firm offering hydrogen fuel for sale in this state shall must first register with and obtain approval from the department. Registration shall must include a complete list of the fuel specifications the product is to meet and the sites where the product is offered for sale to the general public.
(8) Standards established or adopted pursuant to this section shall be by rules promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 4. (1) A retail dealer shall not transfer, sell, dispense, or offer gasoline for sale in this state unless the pump dispensing the gasoline is posted with a notice, as provided in subsection (2), section 4b, that indicates the grade of gasoline and the additives in the gasoline that are dispensed from the pump. If the gasoline contains at least 1% alcohol by volume, the notice shall state: "Contains (indicate the type of alcohol such as methanol, and if methanol the label shall state "alcohol: methanol", followed, in the same size type, by the concentration to the nearest whole percent)". If the gasoline contains alcohols or ethers that have a molecular weight greater than ethanol and are not mixed with methanol, those alcohols or ethers are not subject to the notice requirement of this section. Gasoline that contains 10% or less ethanol by volume is not subject to the notice requirement of this section.
(2) The director shall design a uniform means of providing the notice required by subsection (1). The notice shall be designed in such a manner that the consumer can readily identify the grade of gasoline and the additives in the gasoline. The notice shall include a statement indicating that the gasoline dispensed from the pump meets the quality and purity standards established by the laws of this state and indicating the number of the 24-hour toll free consumer hot line maintained pursuant to section 7(2).
(3) The director shall include the design for the uniform notice required by this section in a rule promulgated under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(2) Gasoline containing more than 10% ethanol by volume and less than 15% ethanol by volume must be labeled with the E.P.A.'s required label.
(3) (4) A person who violates this section or rules promulgated pursuant to this section is liable for a civil fine not to exceed $1,000.00 for each day of the continuance of the violation. A civil fine ordered pursuant to this section shall be submitted to the state treasurer for deposit in the gasoline inspection and testing fund created by section 8.
(5) Subsection (1) shall not apply until 90 days after the rule required by subsection (3) is promulgated.
Sec. 4a. (1) A storage tank at a retail outlet shall be periodically tested by the retail dealer to insure ensure that the tank does not have water or water-alcohol at the bottom of that tank in an amount greater than 2 inches. 1/2 inch. If there is more than 2 inches 1/2 inch of water or water-alcohol at the bottom of the storage tank, gasoline, diesel fuel, biodiesel, or biodiesel blend shall not be sold to a consumer from that tank until the water or water-alcohol level is reduced to a level of less than 2 inches.1/2 inch.
(2) Motor fuel dispensers dispensing any alcohol fuel blend must be fitted with fuel-water removing filters of 10 microns or less designed to detect phase separation.
(3) (2) Adequate testing supplies, as determined by the department, shall be maintained at the retail outlet and shall also be made available to the department to determine the water or water-alcohol level in the storage tank.
Sec. 4b. (1) A retail dealer shall not transfer, sell, dispense, or offer gasoline for sale in this state unless every dispenser is posted with a notice that contains all of the following information listed in the following order:
(a) The statement: "MEETS MICH. QUALITY & PURITY STANDARDS FOR" or, subject to subsection (4)(b), "MEETS MICH. QUALITY & PURITY STANDARDS".
(b) The name of 1 of the 8 uniform gasoline grades established in section 3 or the name of a special grade listed with and approved by the department.
(c) A statement that the gasoline contains methanol, cosolvent, or any additives in the amount of 1% or more by volume and the information required in subsection (2). If the gasoline does not contain additives in the amount of 1% or more by volume or contains an alcohol or ether that has a molecular weight greater than ethanol and is not mixed with methanol or ethanol, the dispenser is not required to be posted with a list of additives.
(d) The statement: "CONSUMER COMPLAINT TOLL-FREE HOT LINE: CALL 1-800-MDA-FUEL".
(2) If an additive is methanol, the notice must state "CONTAINS ALCOHOL: METHANOL ______%", the blank to be filled in with the concentration to the nearest whole percent. If an additive is another alcohol other than methanol and is used as a cosolvent, the notice must state "CONTAINS __________", the blank to be filled in with the type of alcohol, such as tertiary butyl alcohol, and the concentration to the nearest whole percent. If an additive is ethanol, no notice indicating the presence or concentration is required if the gasoline contains not more than 10% ethanol by volume.
(3) A retail dealer shall not transfer, sell, dispense, or offer diesel, biodiesel, biodiesel blend, biomass-based diesel, biomass-based diesel blend, or ethanol flex fuel for sale in this state unless every dispenser is posted with a notice that contains all of the following information listed in the following order:
(a) The statement: "MEETS MICH. QUALITY & PURITY STANDARDS FOR" or, subject to subsection (4)(b), "MEETS MICH. QUALITY & PURITY STANDARDS".
(b) The commodity name and content statement as follows:
(i) For diesel blended to contain 5%-20% by volume biodiesel, the statement "BIODIESEL BLEND: CONTAINS BIODIESEL IN QUANTITIES BETWEEN 5 PERCENT AND 20 PERCENT".
(ii) For diesel blended to contain more than 20% by volume biodiesel, the statement "B____, BIODIESEL BLEND: CONTAINS MORE THAN 20% BIODIESEL", the blank to be filled in with the volume percentage of biodiesel in the diesel fuel blend.
(iii) For 100% biodiesel, the statement "B 100 BIODIESEL: CONTAINS 100 PERCENT BIODIESEL".
(iv) For diesel blended to contain 5%-20% by volume biomass-based diesel or combination of biomass-based diesel and biodiesel, the statement "BIOMASS-BASED DIESEL BLEND: CONTAINS BIOMASS-BASED DIESEL OR BIODIESEL IN QUANTITIES BETWEEN 5 PERCENT AND 20 PERCENT".
(v) For diesel blended to contain more than 20% by volume biomass-based diesel or combination of biomass-based diesel and biodiesel, the statement "____% BIOMASS-BASED DIESEL BLEND; CONTAINS MORE THAN 20% BIOMASS-BASED DIESEL OR BIODIESEL", the blank to be filled in with the volume percentage of biomass-based diesel in the diesel fuel blend.
(vi) For 100% biomass-based diesel, the statement "100% BIOMASS-BASED DIESEL: CONTAINS 100 PERCENT BIOMASS-BASED DIESEL".
(vii) For diesel not blended with biodiesel or biomass-based diesel or blended to contain 0%-5% biodiesel or 0%-5% biomass-based diesel or 0%-5% by volume of a combination of biodiesel and biomass-based diesel must be labeled as follows:
(A) "ULTRA-LOW SULFUR HIGHWAY DIESEL FUEL" for a diesel fuel containing not more than 15 ppm sulfur.
(B) "LOW SULFUR HIGHWAY DIESEL FUEL" for a diesel fuel containing not more than 500 ppm sulfur.
(C) "NON-HIGHWAY DIESEL FUEL" for a diesel fuel containing more than 500 ppm sulfur.
(viii) Ethanol flex fuel with an ethanol concentration of not less than 51% and not more than 83% by volume must be labeled "ETHANOL FLEX FUEL, MINIMUM 51% ETHANOL".
(ix) Ethanol flex fuel with an ethanol concentration of 50% by volume or less must be labeled "EXX FLEX FUEL, MINIMUM YY % ETHANOL" where XX is the ethanol concentration in volume percent and YY is XX minus 5. The actual ethanol concentration of the fuel must be XX volume percent plus or minus 5 volume percent.
(x) For any ethanol flex fuel, a label must be posted that states "FOR USE IN FLEXIBLE FUEL VEHICLES (FFV) ONLY". This information must be clearly and conspicuously posted on the upper 50% of the dispenser front panel in a type at least 12.7 millimeters in height by 1.5 millimeters in stroke width. A label must be posted that states, "CHECK OWNER'S MANUAL", and must not be less than 6 millimeters in height by 0.8 millimeters in stroke width. The type must use block style letters and the color must be in definite contrast to the background color to which it is applied.
(c) The statement: "CONSUMER COMPLAINT TOLL-FREE HOT LINE: CALL 1-800-MDA-FUEL".
(4) All of the following apply to notices described in this section:
(a) The notices must be located on every side of the dispenser that has a price computation or quantity display panel and must be placed not less than 34 inches and not more than 78 inches above the driveway elevation.
(b) If more than 1 grade of motor fuel is offered from a single dispenser, 1 notice on every side of the dispenser that has a price computation or quantity display panel containing the information required in subsections (1)(a) and (d) and (3)(a) and (c) is acceptable. If 1 notice is used for the information required in subsections (1)(a) and (d) and (3)(a) and (c), the information required in subsections (1)(b) and (c) and (3)(b) must be separately posted for each motor fuel or gasoline grade offered from the dispenser and must be located immediately adjacent to either the associated brand name, the associated pump nozzle, or the unit price for that motor fuel in a manner that clearly connects the required notice with the associated brand name, nozzle, or unit price.
(c) The notice must be conspicuous and legible to a customer when viewed from the driver's position of a motor vehicle positioned in front of the dispenser.
(5) A notice must be posted on each dispenser that dispenses motor fuel designed for unique equipment or services as provided in subsection (12). The notice must state the common or customary name of the motor fuel and include the statement "THIS MOTOR FUEL IS NOT FOR GENERAL AUTOMOTIVE SERVICE; FOR USE IN ___________", the blank to be filled in with a description of the unique equipment, vehicles, or services with which the motor fuel is compatible. The notice must be located on the dispenser as prescribed by subsection (4).
(6) Helvetica medium typeface must be used for all letters and numerals specified by this section. The letters for the statement required in subsections (1)(a) and (3)(a) and the statement "CALL 1-800-MDA-FUEL" required in subsections (1)(d) and (3)(c) must be not less than 24-point type size. The letters for the words "CONSUMER COMPLAINT TOLL-FREE HOT LINE" required in subsections (1)(d) and (3)(c) must be not less than 10-point type size. All other letters and numerals required to appear in the notices required by this section must be printed in not less than 48-point type size. Only upper case letters or title case letters of identical color must be used for statements and notices except that variations in color are allowed if the variation conforms with 16 CFR part 306 and 40 CFR part 1090.
(7) The retailer shall be provided, at the time of delivery of a motor fuel, on an invoice, bill of lading, shipping paper, or other documentation, a declaration of the motor fuel being delivered. If the motor fuel is a gasoline, the AKI of the product being delivered must also be declared. The percent of biodiesel or bio-based diesel must also be declared if present. Any documentation evidencing a delivery of a motor fuel must meet all of the requirements of section 5.
(8) Fill boxes and fill covers for motor fuel storage tanks at retail must be clearly identified as to the content by at least 1 of the following:
(a) Attaching a tag with the motor fuel name to the fill pipe adapter.
(b) Screwing a tag with the motor fuel name onto the fill box rim.
(c) Fitting a plastic or fiberglass insert with the motor fuel name inside the rim of the fill box.
(d) Color coding by painting the cover of the fill box and the surrounding rim or pavement. When utilizing this system, the gasoline storage tank containing the highest octane product must be coded red, the gasoline storage tank with the lowest octane must be coded white, and gasoline with an octane between the highest and lowest must be coded blue. A chart or code designating the color designations for other motor fuel storage tanks and vapor-recovery connections and manholes must be posted on the premises in clear view and accessible to a delivery tank driver and made available to the department on request.
(9) Storage tanks located at a distribution terminal must be clearly identified as to the content by either of the following:
(a) Attaching a label to the tank that states the commodity being stored.
(b) Attaching a color or symbol to the tank that designates the commodity being stored. When utilizing a color or symbol system, a chart or code designating the color or symbol designations must be posted on the premises and made available to the department on request.
(10) A motor fuel delivery vessel must use for each loading and unloading of motor fuel a system of identification that clearly identifies the motor fuel contained within each compartment by at least 1 of the following:
(a) A marking system of tags or placards attached to each compartment or the valves used for each compartment.
(b) A chart or diagram that positively identifies each compartment and its contents.
(11) 16 CFR part 306 and 40 CFR part 1090 are adopted by reference.
(12) Specific use variations or exemptions may be made for motor fuel designed for unique equipment or services if it can be demonstrated to the department that the distribution and sale of that motor fuel will be restricted to that unique equipment or service.
Sec. 5. (1) Except as provided by federal law or regulation, in the manufacture of gasoline, diesel fuel, or hydrogen fuel at any refinery in this state, a refiner shall not manufacture gasoline, diesel fuel, or hydrogen fuel at a refinery in this state unless the gasoline, diesel fuel, or hydrogen fuel meets the requirements in sections 3 and 10d. Except as provided by federal law or regulation, a blender shall not blend gasoline unless the finished blend meets the requirements in sections 3 and 10d.
(2) Except as provided by federal law or regulation, a distributor shall not sell or transfer to any distributor, retail dealer, or bulk purchaser-end user any gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel unless that gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel meets the requirements in sections 3 and 10d and is suitable for its intended purpose.
(3) A carrier or an employee or agent of a carrier, whether operating under contract or tariff, shall not cause gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel tendered to the carrier for shipment or transfer to another carrier, distributor, or retail dealer to fail to comply, at the time of delivery, with the requirements in sections 3 and 10d.
(4) A person shall not knowingly sell, dispense, or offer for sale gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel unless that gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel meets the requirements in sections 3 and 10d.
(5) A refiner or distributor shall not transfer, sell, dispense, or offer gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel for sale in this state to a distributor unless the refiner or distributor indicates on each bill, invoice, or other instrument evidencing a delivery of gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel the name of the wholesale distributor who received delivery of the gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel.
(6) A distributor or refiner shall not transfer, sell, dispense, or offer gasoline, diesel fuel, biodiesel, biodiesel blend, ethanol flex fuel, compressed natural gas, or hydrogen fuel for sale in this state to a retail dealer unless the retail dealer has a valid retail gasoline motor fuel outlet license pursuant to this act.
(7) A bill, invoice, or other instrument evidencing a delivery of gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel issued by a refiner or distributor for deliveries of gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel to purchasers who are not required to hold a license issued pursuant to the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170, or this act shall clearly indicate the name and address and other information necessary to identify the purchaser of the gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel.
(8) A bill, invoice, or other instrument evidencing a delivery of gasoline required by subsection (5) , (6), or (7) shall include a guarantee that the gasoline delivered meets the requirements in sections 3 and 10d and shall indicate the concentration range of alcohol in the gasoline, except for alcohols or ethers that have a molecular weight greater than ethanol and are not mixed with methanol or ethanol, or both, and shall indicate the possible presence, without regard to concentration range, of any alcohols or ethers that have a molecular weight greater than ethanol and are not mixed with methanol or ethanol, or both.
(9) A refiner, distributor, bulk purchaser-end user, or retail dealer shall not transfer, sell, dispense, or offer gasoline, diesel fuel, biodiesel, or biodiesel blend for sale unless that gasoline, diesel fuel, biodiesel, or biodiesel blend is visibly free of undissolved water, sediments, and other suspended matter and the gasoline is clear and bright at an ambient temperature or 70 degrees Fahrenheit, whichever is greater.
(10) A person who violates this section or rules promulgated under this section is liable for a civil fine not to exceed $10,000.00 for each day of the continuance of the violation. A civil fine ordered pursuant to this section shall be submitted to the state treasurer for deposit in the gasoline inspection and testing fund created by section 8.
Sec. 6. (1) Before a distributor or retail dealer engages in transferring, selling, dispensing, or offering for sale gasoline, diesel fuel, biodiesel, biodiesel blend, ethanol flex fuel, compressed natural gas, or hydrogen fuel in this state, the distributor or retail dealer shall obtain a license from the department for each retail outlet operated by that person. In administering the licensing under this section, the department may attempt to coordinate the licensing with the licensing applicable to gasoline administered by the department of treasury pursuant to the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170, and the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78. This subsection does not apply to a retail outlet engaged in the marketing of gasoline for use only in an aircraft.
(2) A license expires annually on November 30 unless renewed before December 1 of each year or unless suspended, denied, or revoked by the department. The following late fees are assessed to a license renewed after December 1:
(a) From December 1 through December 10, $100.00.
(b) From December 11 through December 20, $250.00.
(c) After December 20, $500.00.
(3) A license shall not be issued or renewed until any administrative fines imposed under section 10a, late fees imposed under subsection (2), and any fees imposed under section 10a of the weights and measures act, 1964 PA 283, MCL 290.610a, have been paid. A hearing is not required before the refusal to issue or renew a license under this subsection.
(4) An application for a license shall be made to the department upon a form furnished by the department. The completed form shall contain the information requested by the department. Both of the following apply to an application for a license:
(a) A completed original application must be filed with the department by a distributor or retail dealer for each retail outlet operated by that person not less than 30 days before the date on which the applicant engages in retail sales. If sufficient time is not available to apply 30 days prior to engaging in retail sales and the applicant is a new owner of a retail outlet, the department shall waive the 30-day filing requirement and issue a license on receipt, in person or by mail, of the completed application, applicable fees, and written notice that the applicant is a new owner. The application must include all of the following information:
(i) Business name and address.
(ii) Mailing address if different than business address.
(iii) Type of legal entity that owns the distributor or retail dealer, including, but not limited to, an individual, partnership, association, trust, corporation, or any other legal entity or combination of legal entities.
(iv) The name, address, telephone number, and date of birth of the owner of the distributorship or retail dealership.
(v) All of the following information:
(A) For a partnership, the names, titles, addresses, and dates of birth of all partners who are owners of the distributorship or retail dealership.
(B) For a corporation in this state, the name, title, address, and date of birth of the president.
(C) For an out-of-state corporation, the name, title, address, and date of birth of the president and the name, title, and address of the corporation's resident agent in this state.
(vi) An authorized signature, title, and date for each applicant.
(vii) Number of grades of gasoline offered for sale at the retail outlet.
(viii) Number of grades of gasoline containing 15% ethanol by volume offered for sale at the retail outlet.
(ix) Number of grades of diesel fuel offered for sale at the retail outlet.
(x) Whether E-85 or ethanol flex fuels are offered for sale at the retail outlet.
(b) A license renewal application shall be made on or before November 30 of the year the license expires. The application must include all of the information required in subdivision (a) for an original license application.
(5) The director may suspend, deny, or revoke a license issued pursuant to this act for failure to comply with the requirements provided for in section 3, for failure to provide notice as provided in section 4, or for violating section 31 of the weights and measures act, 1964 PA 283, MCL 290.631, if that violation occurs at any of the licensee's retail outlets and involves the transferring, selling, dispensing, or the offering for sale of gasoline in this state, or for otherwise failing to comply with this act or a rule promulgated under this act or an order issued under this act.
(6) If a person licensed under this act is convicted of an intentional violation under section 31 of the weights and measures act, 1964 PA 283, MCL 290.631, any license issued pursuant to this act shall be revoked for 2 years.
(7) A suspension, revocation, or denial of a license of a person who is an individual results in the suspension, revocation, or denial of any other license held or applied for by that individual under this act. The license of a corporation, partnership, or other association shall be suspended when a license or license application of a partner, trustee, director, or officer, member, or a person exercising control of the corporation, partnership, or other association is suspended, revoked, or denied. The suspension shall remain in force until the director determines that the disability created by the suspension, revocation, or denial has been removed.
(8) Except as otherwise provided in subsection (3), the department shall issue an initial or renewal license not later than 120 days after the applicant files a completed application. If the application is considered incomplete by the department, the department shall notify the applicant in writing or make the notification electronically available within 40 days after receipt of the incomplete application, describing the deficiency and requesting the additional information. The 120-day period is tolled upon notification by the department of a deficiency until the date all of the information requested during the 40-day period is received by the department. Requests for new or additional information by the department that fall outside the 40-day period do not toll the 120-day period. The determination of the completeness of an application is not an approval of the application for the license and does not confer eligibility to an applicant determined otherwise ineligible for issuance of a license.
(9) The director shall submit a report by December 1 of each year to the standing committees and appropriations subcommittees of the senate and house of representatives concerned with motor fuel quality issues. The director shall include all of the following information in the report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the department received and completed within the 120-day time period described in subsection (8).
(b) The number of applications denied .
(c) The number of applications that were not granted or denied within the 120-day period described in subsection (8).
(10) (9) Before a blender engages in the transferring, selling, dispensing, or offering for sale of blended gasoline in this state, the blender shall register the finished product with the department and provide to the department test results as the department considers necessary. If the product does not comply with the requirements of section 3, the blender shall provide the department with a written list of the business names and addresses to whom the blended product is sold.
(11) (10) As used in this section, "completed application" means an application complete on its face and submitted with any other information, records, approval, security, or similar item required by law or rule from a local unit of government, a federal agency, or a private entity but not from another department or agency of this state.
Sec. 7. (1) The director shall establish a gasoline, diesel fuel, biodiesel, and biodiesel blend inspection, investigation, and testing program. The purpose of the inspection, investigation, and testing program is to determine whether gasoline, diesel fuel, biodiesel, and biodiesel blend transferred, sold, dispensed, or offered for sale in this state meet the requirements provided in this act, to sample, to investigate allegations of fraud, to inspect and investigate violations of the weights and measures act, 1964 PA 283, MCL 290.601 to 290.634, 290.635, and whether notice required by section 4 is provided. The program shall provide for a regular system of monitoring gasoline, diesel fuel, biodiesel, and biodiesel blend sold or offered for sale in this state. The department shall implement the inspection, investigation, and testing program as provided in subsection (8). (9). The expenses of operating the program shall be paid from money in the gasoline inspection and testing fund created in section 8.
(2) As part of the inspection and testing program the director shall maintain a 24-hour toll free consumer hot line to receive consumer complaints regarding vapor-recovery systems and the purity and quality of gasoline sold or offered for sale in this state.
(3) If the director has reason to believe a violation of section 5 or rules promulgated under section 5 has occurred, the director may require a refiner, distributor, storage facility, blender, bulk purchaser-end user, or retail dealer to provide to the department the original documents pertaining to the receipt, transfer, delivery, storage, or sale of gasoline, diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel and to allow the original documents to remain in the possession of the department. If original documents remain in the possession of the department and the documents are necessary for conducting business, the department shall provide copies of the documents to the refiner, distributor, blender, bulk purchaser-end user, or retail dealer upon request. A refiner, distributor, bulk purchaser-end user, blender, or retail dealer shall preserve information regarding the receipt, transfer, delivery, storage, or sale of gasoline, including loading tickets, bills of lading, drop tickets, meter tickets, invoices, sales reports, and billings, for 3 years. A retail outlet shall retain on its premises the original drop tickets, bills of lading, and invoices for 1 month before transfer to another location.
(4) The director, upon presentation of appropriate credentials, may do all of the following:
(a) Enter upon or through any retail outlet, bulk purchaser-end user facility, dispensing facility, or the premises or property of any refiner or distributor.
(b) Make inspections, take samples, and conduct tests during any hours the business is operating.
(c) Examine records during normal business hours to determine compliance with this act.
(5) In addition to the powers provided in this act, the director has all the powers to enforce this act that the director has under the weights and measures act, 1964 PA 283, MCL 290.601 to 290.634.290.635.
(6) The director may transmit any information obtained pursuant to the inspection and testing program to any other agency of this state if the information will assist the other agency to carry out any of the agency's regulatory functions or responsibilities related to the transfer, sale, dispensing, or offering of gasoline for sale in this state.
(7) All of the following apply to an investigation under this section:
(a) The identity of an individual submitting information regarding an alleged violation or threatened violation of this act by a retailer is confidential and is not subject to the disclosure requirements of the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, except that the identity of the individual may be disclosed if the disclosure is made under any of the following circumstances:
(i) With the written consent of the individual.
(ii) Pursuant to a court proceeding.
(iii) To the director or an agent or employee of the department.
(iv) To an agent or employee of a state or the federal government authorized by law to see the identity of the individual.
(b) Information furnished under this section that is considered confidential information shall not be disclosed by an employee of the department in a manner that divulges the business operations of a licensee required by this section to make a report. Business information furnished under this subsection or collected pursuant to section 9g is confidential business information and is not subject to the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(c) The director may take photographs of an area or copy records as part of an evaluation or inspection. If a retailer identifies by written document or mark that a certain area or record contains visible trade secrets, the director shall identify any photographs of that area or copies of that record as being confidential and shall diligently protect the confidentiality.
(8) (7) The director may promulgate rules for the purpose of implementing and enforcing this act.
(9) (8) The department shall implement the inspection and testing program provided in subsection (1) as follows:
(a) Inspection and testing for standards regarding lead, alcohol, free water, and sediments within 90 days after the effective date of this act.
(b) Inspection and testing for any other standards by March 29, 1987.
Sec. 7a. (1) Gasoline testing procedure for vapor pressure must comply with 40 CFR 80.46(c).
(2) Gasoline testing procedure for ethanol must comply with 40 CFR 80.46(g)(1) or (2).
Sec. 7b. (1) This act does not apply to any of the following:
(a) Dispensing facilities at a vehicle manufacturer's proving grounds or other testing facilities, or at the facilities of a manufacturer's agent, that are used exclusively for the testing of vehicles, components, or materials.
(b) Vehicle manufacturer's assembly facilities or the fueling of production line vehicles before sale for in-plant relocation or distribution.
(c) Reformulated gasoline.
(2) Gasoline that exceeds the vapor pressure limits does not violate this act if the gasoline is separately stored, sealed, clearly labeled, and not used until it is in compliance with this act. The label shall state that the gasoline is prohibited by the laws of the state of Michigan from being sold, dispensed, supplied, offered for sale, offered for supply, transported, or exchanged in trade in Michigan until compliance is achieved under this act.
Sec. 10a. (1) A person who individually, or by the action of his or her that person's agent or employee, or as the agent or employee of another violates this act or a rule promulgated under this act is subject to an administrative fine. Upon the request of a person to upon whom an administrative fine is issued, imposed, the director shall conduct a hearing conducted pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. A fine authorized by this section shall be as follows:
(a) For a first violation, not less than $100.00 or more than $500.00, plus actual costs of the investigation and double the amount of any economic benefit associated with the violation.
(b) For a second violation within 5 years after the first violation, not less than $500.00 or more than $1,000.00, plus actual costs of the investigation and double the amount of any economic benefit associated with the violation.
(c) For a third violation within 5 years after the date of the first violation, not less than $1,000.00 or more than $2,000.00, plus actual costs of the investigation and double the amount of any economic benefit associated with the violation.
(d) A fine shall be doubled for motor fuels that contain water, sediment, or gasoline that is below the minimum AKI rating for that grade of gasoline under section 3(3).
(2) A decision of the director under this section is subject to judicial review as provided by law.
(3) The director shall advise the attorney general of the failure of any person to pay an administrative fine imposed under this section. The attorney general shall bring an action in court of competent jurisdiction to recover the fine.
(4) Any administrative fine, costs, and the recovery of any economic benefit associated with a violation collected under this section shall be paid to the state treasury and deposited into the gasoline inspection and testing fund.
Sec. 10d. Beginning June 1 through September 15 of 2007 and for that period of time each subsequent year, the vapor pressure standard shall be 7.0 psi for dispensing facilities in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties. Counties. The director retains the authority to implement the vapor pressure 7.0 psi requirement or 7.8 psi requirement in areas where it is determined necessary to attain or maintain national ambient air quality standards. If an area of the state that is required to use a low vapor pressure fuel of 7.8 psi or 7.0 psi has been redesignated by the United States environmental protection agency E.P.A. as in attainment of national ambient air quality standards, and the Michigan department of environmental quality environment, Great Lakes, and energy has demonstrated that maintenance of the national ambient air quality standards can be achieved without the use of low vapor pressure fuel, the director may, with the approval of the United States environmental protection agency, E.P.A., terminate the low vapor pressure fuel requirement for that area. The maximum vapor pressure must not exceed the limits in section 10d by more than 1.0 psi for blends containing 9% to 15% ethanol by volume from June 1 through September 15.
Enacting section 1. Section 5a of the motor fuels quality act, 1984 PA 44, MCL 290.645a, is repealed.
