Bill Text: MN SF448 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: Biofuel production provisions modifications and biobutanol definition

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-03-14 - Second reading [SF448 Detail]

Download: Minnesota-2013-SF448-Engrossed.html

1.1A bill for an act
1.2relating to renewable energy; establishing definitions; providing a sunset date for
1.3the cellulosic ethanol production goal; converting the ethanol minimum content
1.4requirement to a biofuel requirement; expanding the petroleum replacement
1.5goal; repealing E20 mandate language;amending Minnesota Statutes 2012,
1.6sections 41A.10, subdivision 2, by adding a subdivision; 116J.437, subdivision
1.71; 239.051, by adding subdivisions; 239.791, subdivisions 1, 2a, 2b; 239.7911;
1.8296A.01, by adding a subdivision; repealing Minnesota Statutes 2012, section
1.9239.791, subdivision 1a.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
1.12    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
1.13goal is one-quarter of the total amount necessary for ethanol biofuel use required under
1.14section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
1.15attain a total annual production level of 60,000,000 gallons, whichever is first.

1.16    Sec. 2. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
1.17to read:
1.18    Subd. 3. Expiration. This section expires January 1, 2015.

1.19    Sec. 3. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
1.20    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
1.21have the meanings given.
1.22(b) "Green economy" means products, processes, methods, technologies, or services
1.23intended to do one or more of the following:
2.1    (1) increase the use of energy from renewable sources, including through achieving
2.2the renewable energy standard established in section 216B.1691;
2.3    (2) achieve the statewide energy-savings goal established in section 216B.2401,
2.4including energy savings achieved by the conservation investment program under section
2.5216B.241 ;
2.6    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
2.7subdivision 1, including through reduction of greenhouse gas emissions, as defined in
2.8section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
2.9but not limited to, carbon capture, storage, or sequestration;
2.10    (4) monitor, protect, restore, and preserve the quality of surface waters, including
2.11actions to further the purposes of the Clean Water Legacy Act as provided in section
2.12114D.10, subdivision 1 ;
2.13    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
2.14cost of producing biofuels or the types of equipment, machinery, and vehicles that can
2.15use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
2.1641A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
2.17(6) increase the use of green chemistry, as defined in section 116.9401.
2.18For the purpose of clause (3), "green economy" includes strategies that reduce carbon
2.19emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
2.20transit or otherwise reducing commuting for employees.

2.21    Sec. 4. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
2.22to read:
2.23    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
2.24Law 110-140, title 2, subtitle A, section 201.

2.25    Sec. 5. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
2.26to read:
2.27    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
2.28under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
2.29by the federal Energy Independence and Security Act of 2007, Public Law 110–140,
2.30and approved for sale by the United States Environmental Protection Agency. The term
2.31"biofuel" includes both advanced and conventional biofuels.

2.32    Sec. 6. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
2.33to read:
3.1    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
3.2from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

3.3    Sec. 7. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
3.4    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
3.5in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
3.6sold or offered for sale in Minnesota must contain, at the option of the person responsible
3.7for the product, at least the quantity of ethanol biofuel required by clause (1) or (2),
3.8whichever is greater:
3.9(1) 10.0 percent denatured ethanol biofuel by volume; or
3.10(2) the maximum percent of denatured ethanol biofuel by volume authorized
3.11in a waiver granted by the United States Environmental Protection Agency or a fuel
3.12formulation registered by the United States Environmental Protection Agency under
3.13United States Code, title 42, section 7545.
3.14(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
3.15clause (1), a gasoline/ethanol gasoline/biofuel blend will be construed to be in compliance
3.16if the ethanol biofuel content, exclusive of denaturants and other permitted components,
3.17comprises not less than 9.2 percent by volume and not more than 10.0 percent by volume
3.18of the blend as determined by an appropriate United States Environmental Protection
3.19Agency or American Society of Testing Materials standard method of analysis of
3.20alcohol/ether content in engine fuels.
3.21(c) The provisions of this subdivision are suspended during any period of time that
3.22subdivision 1a, paragraph (a), is in effect. Biofuel blended pursuant to this subdivision
3.23may be any biofuel; however, conventional biofuel must comprise no less than the portion
3.24specified on and after the specified dates:
3.25
(1)
July 1, 2013
90 percent
3.26
(2)
January 1, 2015
80 percent
3.27
(3)
January 1, 2017
70 percent
3.28
(4)
January 1, 2020
60 percent
3.29
(5)
January 1, 2025
no minimum

3.30    Sec. 8. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
3.31    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
3.32by the United States Environmental Protection Agency under section 211(f)(4) of the
3.33Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
3.34 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
3.35or subdivision 1a, paragraph (a), clause (2), the waiver must:
4.1(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
4.2(2) allow for special regulatory treatment of Reid vapor pressure under Code of
4.3Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
4.4ethanol up to the maximum percent of denatured ethanol by volume authorized under
4.5the waiver.
4.6(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
4.7(2), or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver
4.8 or authority specified in United States Code, title 42, section 7545, that allows for greater
4.9blends of gasoline and biofuel in this state, be effective the day after the commissioner
4.10of commerce publishes notice in the State Register. In making this determination, the
4.11commissioner shall consider the amount of time required by refiners, retailers, pipeline
4.12and distribution terminal companies, and other fuel suppliers, acting expeditiously, to
4.13make the operational and logistical changes required to supply fuel in compliance with
4.14the minimum ethanol biofuel requirement.

4.15    Sec. 9. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
4.16    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
4.17product by virtue of the fact that the motor fuel is formulated or blended pursuant to
4.18the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under
4.19any theory of liability except for simple or willful negligence or fraud. This subdivision
4.20does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
4.21does not affect a person whose liability arises under chapter 115, water pollution control;
4.22115A, waste management; 115B, environmental response and liability; 115C, leaking
4.23underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
4.24to the environment or the public health; under any other environmental or public health
4.25law; or under any environmental or public health ordinance or program of a municipality
4.26as defined in section 466.01.

4.27    Sec. 10. Minnesota Statutes 2012, section 239.7911, is amended to read:
4.28239.7911 PETROLEUM REPLACEMENT PROMOTION.
4.29    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
4.30goal of the state of Minnesota is that biofuel comprises at least the specified portion of
4.31total gasoline sold or offered for sale in this state by each specified year:
4.32    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
4.33sources by December 31, 2015; and
5.1    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
5.2sources by December 31, 2025.
5.3
(1)
2015
14 percent
5.4
(2)
2017
18 percent
5.5
(3)
2020
25 percent
5.6
(4)
2025
30 percent
5.7    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
5.8in consultation with the commissioners of commerce and the Pollution Control Agency,
5.9shall identify and implement activities necessary for the widespread use of renewable
5.10liquid fuels in the state to achieve the goals in subdivision 1. Beginning November 1,
5.112005, and continuing through 2015, the commissioners, or their designees, shall work with
5.12representatives from the renewable fuels industry, petroleum retailers, refiners, automakers,
5.13small engine manufacturers, and other interested groups, to. The representatives shall assist
5.14the commissioners in carrying out the activities in paragraph (b) and eliminating barriers to
5.15the use of greater biofuel blends in this state. The representatives must coordinate efforts
5.16with the NextGen Energy Board, the biodiesel task force, and the Renewable Energy
5.17Roundtable and develop annual recommendations for administrative and legislative action.
5.18    (b) The activities of the commissioners under this subdivision shall include, but not
5.19be limited to:
5.20    (1) developing recommendations for specific, cost-effective incentives necessary
5.21to expedite the use of greater biofuel blends in this state including, but not limited to,
5.22incentives for retailers to install equipment necessary for dispensing to dispense renewable
5.23liquid fuels to the public;
5.24    (2) expanding the renewable-fuel options available to Minnesota consumers by
5.25obtaining federal approval for the use of E20 and additional blends that contain a greater
5.26percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
5.27    (3) developing recommendations for ensuring to ensure that motor vehicles and
5.28small engine equipment have access to an adequate supply of fuel;
5.29    (4) working with the owners and operators of large corporate automotive fleets in the
5.30state to increase their use of renewable fuels; and
5.31    (5) working to maintain an affordable retail price for liquid fuels; and
5.32    (6) facilitating the production and use of advanced biofuels in this state.

5.33    Sec. 11. Minnesota Statutes 2012, section 296A.01, is amended by adding a
5.34subdivision to read:
6.1    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
6.2fermenting agriculturally generated organic material that is to be blended with gasoline,
6.3and meets either:
6.4    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
6.5for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
6.6for general distribution; or
6.7    (2) in the absence of an ASTM Standard Specification, the following list of
6.8requirements:
6.9    (i) visually free of sediment and suspended matter;
6.10    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
6.11temperature whichever is higher;
6.12    (iii) free of any adulterant or contaminant that can render it unacceptable for its
6.13commonly used applications;
6.14    (iv) contains not less than 96 volume percent isobutyl alcohol;
6.15    (v) contains not more than 0.4 volume percent methanol;
6.16    (vi) contains not more than 1.0 volume percent water as determined by ASTM
6.17standard test method E203 or E1064;
6.18    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
6.19by ASTM standard test method D1613;
6.20    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
6.21as determined by ASTM standard test method D381;
6.22    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
6.23standard test method D2622 or D5453; and
6.24    (x) contains not more than 4 parts per million total inorganic sulfate.

6.25    Sec. 12. REPEALER.
6.26Minnesota Statutes 2012, section 239.791, subdivision 1a, is repealed.
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