Bill Text: MN HF2441 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Biodiesel content requirements and related regulations modified, and sunset eliminated.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Introduced - Dead) 2014-03-19 - Authors stricken Metsa and Melin [HF2441 Detail]
Download: Minnesota-2013-HF2441-Introduced.html
1.2relating to commerce; consumer protection; modifying biodiesel content
1.3requirements and related regulations; eliminating a sunset;amending Minnesota
1.4Statutes 2012, section 239.77, subdivisions 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 239.77, subdivision 2, is amended to read:
1.7 Subd. 2.Minimum Biodiesel content requirements. (a) Except as otherwise
1.8provided in this section, all diesel fuel sold or offered for sale in Minnesota for use in
1.9internal combustion engines must containat least no more than the stated percentage of
1.10biodiesel fuel oil by volume on and after the following dates:
1.15 (b) The minimum content levels level in paragraph (a), clauses clause (3) and (4)
1.16are is effective during the months of April, May, June, July, August, and September,
1.17and October only. The minimum content for the remainder of the year is five percent.
1.18However, if the commissioners of agriculture, commerce, and pollution control determine,
1.19after consultation with the biodiesel task force and other technical experts, that an
1.20American Society for Testing and Materials specification or equivalent federal standard
1.21exists for the specified biodiesel blend level in those clauses that adequately addresses
1.22technical issues associated with Minnesota's cold weather and publish a notice in the State
1.23Register to that effect, the commissioners may allow the specified biodiesel blend level in
1.24those clauses to be effective year-round.
2.1(b) (c) The minimum content levels level in paragraph (a), clauses clause (3) and
2.2(4), become becomes effective on the date specified only if after a contested case hearing
2.3under chapter 14 the commissioners of agriculture, commerce, and pollution control
2.4publish notice in the State Register and provide written notice to the chairs of the house of
2.5representatives and senate committees with jurisdiction over agriculture, commerce, and
2.6transportation policy and finance, at least 270 days prior to the date of each scheduled
2.7increase, that all of the following conditions have been met and the state is prepared to
2.8move to the next scheduledminimum content level:
2.9 (1) an American Society for Testing and Materials specification or equivalent federal
2.10standard exists for the nextminimum diesel-biodiesel blend;
2.11 (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.12in this state from feedstock with at least 75 percent that is produced in the United States
2.13and Canada is equal to at least 50 percent of anticipated demand at the nextminimum
2.14 content level;
2.15 (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.16promote biodiesel quality and avoid any potential economic disruption;and
2.17 (4) at least five percent of the amount of biodiesel necessary for thatminimum
2.18 content level will be produced from a biological resource other than an agricultural
2.19resource traditionally grown or raised in the state, including, but not limited to, algae
2.20cultivated for biofuels production, waste oils, and tallow.; and
2.21(5) the commissioner of public safety certifies that the quality and proposed
2.22maximum biodiesel content by volume meets manufacturer recommendations for all
2.23diesel-powered motor vehicles registered in Minnesota, regardless of model year.
2.24 The condition in clause (2) may be waived if the commissioner finds that, due to
2.25weather-related conditions, the necessary feed stock is unavailable.
2.26 The condition in clause (4) may be waived if the commissioners find that the use of
2.27these nontraditional feedstocks would be uneconomic under market conditions existing at
2.28the time notice is given under this paragraph.
2.29(c) (d) The commissioners of agriculture, commerce, and pollution control must
2.30consult with the biodiesel task force when assessing and certifying conditions in paragraph
2.31 (b) (c), and in general must seek the guidance of the biodiesel task force regarding
2.32biodiesel labeling, enforcement, and other related issues.
2.33(d) (e) During a period of biodiesel fuel shortage or a problem with biodiesel quality
2.34that negatively affects the availability of biodiesel fuel, the commissioner of commerce
2.35may temporarily suspend theminimum content requirement in subdivision 2 until there
3.1is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill theminimum
3.2 content requirement.
3.3(e) By February 1, 2012, and periodically thereafter, (f) The commissioner of
3.4commerce shall annually determine the wholesale diesel price at various pipeline and
3.5refinery terminals in the region, and the biodiesel price determined after credits and
3.6incentives are subtracted at biodiesel plants in the region. The commissioner shall report
3.7wholesale price differences to the governor who, after consultation with the commissioners
3.8of commerce and agriculture,may must by executive order adjust the biodiesel mandate if
3.9a price disparity reported by the commissioner is greater than ten cents per retail gallon or
3.10will cause economic hardship to retailers or consumers of diesel fuel in this state. Any
3.11adjustment must be for a specified period of time, after which the percentage of biodiesel
3.12fuel to be blended into diesel fuel returns to the amount required in subdivision 2.The
3.13biodiesel mandate must not be adjusted to less than five percent.
3.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2013,
3.15and applies to any increase in biodiesel content published in the State Register on or
3.16after that date.
3.17 Sec. 2. Minnesota Statutes 2012, section 239.77, subdivision 3, is amended to read:
3.18 Subd. 3. Exceptions. (a) Theminimum content requirements of subdivision 2 do
3.19not apply to fuel used in the following equipment:
3.20 (1) motors located at an electric generating plant regulated by the Nuclear
3.21Regulatory Commission;
3.22 (2) railroad locomotives;
3.23 (3) off-road taconite and copper mining equipment and machinery;
3.24 (4) off-road logging equipment and machinery; and
3.25 (5) vessels of the United States Coast Guard and vessels subject to inspection under
3.26United States Code, title 46, section 3301, subsection (1), (9), (10), (13), or (15).
3.27 (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
3.28Regulatory Commission has approved the use of biodiesel fuel in motors at electric
3.29generating plants under its regulation.
3.30 (c) Theminimum content requirements of subdivision 2 do not apply to Number 1
3.31diesel fuel sold or offered for sale during the months of October, November, December,
3.32January, February, and March.
3.33(d) This subdivision expires May 1, 2015.
3.34EFFECTIVE DATE.This section is effective the day following final enactment.
1.3requirements and related regulations; eliminating a sunset;amending Minnesota
1.4Statutes 2012, section 239.77, subdivisions 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 239.77, subdivision 2, is amended to read:
1.7 Subd. 2.
1.8provided in this section, all diesel fuel sold or offered for sale in Minnesota for use in
1.9internal combustion engines must contain
1.10biodiesel fuel oil by volume on and after the following dates:
| 1.11 |
(1) |
September 29, 2005 |
2 percent |
|
| 1.12 |
(2) |
May 1, 2009 |
5 percent |
|
| 1.13 |
(3) |
May 1, |
10 percent |
|
| 1.14 |
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23
1.24
2.1
2.2
2.3under chapter 14 the commissioners of agriculture, commerce, and pollution control
2.4publish notice in the State Register and provide written notice to the chairs of the house of
2.5representatives and senate committees with jurisdiction over agriculture, commerce, and
2.6transportation policy and finance, at least 270 days prior to the date of each scheduled
2.7increase, that all of the following conditions have been met and the state is prepared to
2.8move to the next scheduled
2.9 (1) an American Society for Testing and Materials specification or equivalent federal
2.10standard exists for the next
2.11 (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.12in this state from feedstock with at least 75 percent that is produced in the United States
2.13and Canada is equal to at least 50 percent of anticipated demand at the next
2.14 content level;
2.15 (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.16promote biodiesel quality and avoid any potential economic disruption;
2.17 (4) at least five percent of the amount of biodiesel necessary for that
2.18 content level will be produced from a biological resource other than an agricultural
2.19resource traditionally grown or raised in the state, including, but not limited to, algae
2.20cultivated for biofuels production, waste oils, and tallow
2.21(5) the commissioner of public safety certifies that the quality and proposed
2.22maximum biodiesel content by volume meets manufacturer recommendations for all
2.23diesel-powered motor vehicles registered in Minnesota, regardless of model year.
2.24 The condition in clause (2) may be waived if the commissioner finds that, due to
2.25weather-related conditions, the necessary feed stock is unavailable.
2.26 The condition in clause (4) may be waived if the commissioners find that the use of
2.27these nontraditional feedstocks would be uneconomic under market conditions existing at
2.28the time notice is given under this paragraph.
2.29
2.30consult with the biodiesel task force when assessing and certifying conditions in paragraph
2.31
2.32biodiesel labeling, enforcement, and other related issues.
2.33
2.34that negatively affects the availability of biodiesel fuel, the commissioner of commerce
2.35may temporarily suspend the
3.1is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the
3.2 content requirement.
3.3
3.4commerce shall annually determine the wholesale diesel price at various pipeline and
3.5refinery terminals in the region, and the biodiesel price determined after credits and
3.6incentives are subtracted at biodiesel plants in the region. The commissioner shall report
3.7wholesale price differences to the governor who, after consultation with the commissioners
3.8of commerce and agriculture,
3.9a price disparity reported by the commissioner is greater than ten cents per retail gallon or
3.10will cause economic hardship to retailers or consumers of diesel fuel in this state. Any
3.11adjustment must be for a specified period of time, after which the percentage of biodiesel
3.12fuel to be blended into diesel fuel returns to the amount required in subdivision 2.
3.13
3.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2013,
3.15and applies to any increase in biodiesel content published in the State Register on or
3.16after that date.
3.17 Sec. 2. Minnesota Statutes 2012, section 239.77, subdivision 3, is amended to read:
3.18 Subd. 3. Exceptions. (a) The
3.19not apply to fuel used in the following equipment:
3.20 (1) motors located at an electric generating plant regulated by the Nuclear
3.21Regulatory Commission;
3.22 (2) railroad locomotives;
3.23 (3) off-road taconite and copper mining equipment and machinery;
3.24 (4) off-road logging equipment and machinery; and
3.25 (5) vessels of the United States Coast Guard and vessels subject to inspection under
3.26United States Code, title 46, section 3301, subsection (1), (9), (10), (13), or (15).
3.27 (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
3.28Regulatory Commission has approved the use of biodiesel fuel in motors at electric
3.29generating plants under its regulation.
3.30 (c) The
3.31diesel fuel sold or offered for sale during the months of October, November, December,
3.32January, February, and March.
3.33
3.34EFFECTIVE DATE.This section is effective the day following final enactment.
