Bill Text: MN HF634 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: Petroleum identical product pricing requirement added, technical updates made to bring state into compliance with most recent federal fuel standards, minimum octane rating established, biodiesel and biodiesel blend disclosure requirement modified, and E85 requirements modified.

Sponsorship: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2013-05-20 - Secretary of State Chapter 68 05/16/13 [HF634 Detail]

Download: Minnesota-2013-HF634-Engrossed.html

1.1A bill for an act
1.2relating to commerce; weights and measures; adding a requirement for identical
1.3product pricing; making technical updates to bring state into compliance with
1.4most recent federal fuel standards; establishing a minimum octane rating;
1.5modifying disclosure requirements for biodiesel and biofuel blends; modifying
1.6E85 requirements;amending Minnesota Statutes 2012, sections 239.751, by
1.7adding a subdivision; 239.761, subdivisions 3, 4, 5, 6, 7, 8, 10, 11, 13, 16, 17, by
1.8adding a subdivision; 239.77, subdivisions 1, 4; 239.791, subdivision 8.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10    Section 1. Minnesota Statutes 2012, section 239.751, is amended by adding a
1.11subdivision to read:
1.12    Subd. 9. Identical pricing product requirement. Petroleum product dispensed
1.13from a single storage tank or from multiple storage tanks that are joined in such a manner
1.14that the product is commingled while still in the tanks must have an identical base price at
1.15each retail dispenser from which it is offered for sale. This requirement does not preclude
1.16the application of discounts for cash, self-service, customer loyalty programs, or other
1.17discount programs on any basis except octane to the base price at each dispenser.
1.18For the purpose of this subdivision, "base price" means the highest unit price of a
1.19petroleum product dispensed from a single storage tank or from multiple storage tanks
1.20that are joined in such a manner that the product is commingled while still in the tanks,
1.21including taxes and fees, and before the application of discounts, including, but not limited
1.22to, discounts for cash, self-service, customer loyalty programs, and coupons.

1.23    Sec. 2. Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:
1.24    Subd. 3. Gasoline. (a) Gasoline that is not blended with ethanol must not be
1.25contaminated with water or other impurities and must comply with ASTM specification
2.1D4814-08b D4814-11b. Gasoline that is not blended with ethanol must also comply with
2.2the volatility requirements in Code of Federal Regulations, title 40, part 80.
2.3(b) After gasoline is sold, transferred, or otherwise removed from a refinery or
2.4terminal, a person responsible for the product:
2.5(1) may blend the gasoline with agriculturally derived ethanol as provided in
2.6subdivision 4;
2.7(2) shall not blend the gasoline with any oxygenate other than denatured,
2.8agriculturally derived ethanol;
2.9(3) shall not blend the gasoline with other petroleum products that are not gasoline
2.10or denatured, agriculturally derived ethanol;
2.11(4) shall not blend the gasoline with products commonly and commercially known
2.12as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
2.13natural gasoline; and
2.14(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
2.15additive designed to replace tetra-ethyl lead, that is registered by the EPA.

2.16    Sec. 3. Minnesota Statutes 2012, section 239.761, subdivision 4, is amended to read:
2.17    Subd. 4. Gasoline blended with ethanol; general. (a) Gasoline may be blended
2.18with agriculturally derived, denatured ethanol that complies with the requirements of
2.19subdivision 5.
2.20(b) A gasoline-ethanol blend must:
2.21(1) comply with the volatility requirements in Code of Federal Regulations, title
2.2240, part 80;
2.23(2) comply with ASTM specification D4814-08b D4814-11b, or the gasoline base
2.24stock from which a gasoline-ethanol blend was produced must comply with ASTM
2.25specification D4814-08b D4814-11b; and
2.26(3) not be blended with casinghead gasoline, absorption gasoline, condensation
2.27gasoline, drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold,
2.28transferred, or otherwise removed from a refinery or terminal.

2.29    Sec. 4. Minnesota Statutes 2012, section 239.761, subdivision 5, is amended to read:
2.30    Subd. 5. Denatured ethanol. Denatured ethanol that is to be blended with gasoline
2.31must be agriculturally derived and must comply with ASTM specification D4806-08
2.32 D4806-11a. This includes the requirement that ethanol may be denatured only as specified
2.33in Code of Federal Regulations, title 27, parts 20 and 21.

3.1    Sec. 5. Minnesota Statutes 2012, section 239.761, subdivision 6, is amended to read:
3.2    Subd. 6. Gasoline blended with nonethanol oxygenate. (a) A person responsible
3.3for the product shall comply with the following requirements:
3.4(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in
3.5total, of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for
3.6sale at any time in this state; and
3.7(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
3.8paragraph (b) must not be sold or offered for sale in this state.
3.9(b) The oxygenates prohibited under paragraph (a) are:
3.10(1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;
3.11(2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or
3.12(3) tertiary amyl methyl ether.
3.13(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
3.14specification D4814-08b D4814-11b. Nonethanol oxygenates must not be blended into
3.15gasoline after the gasoline has been sold, transferred, or otherwise removed from a
3.16refinery or terminal.

3.17    Sec. 6. Minnesota Statutes 2012, section 239.761, subdivision 7, is amended to read:
3.18    Subd. 7. Heating fuel oil. Heating fuel oil must comply with ASTM specification
3.19D396-08b D396-12.

3.20    Sec. 7. Minnesota Statutes 2012, section 239.761, subdivision 8, is amended to read:
3.21    Subd. 8. Diesel fuel oil. Diesel fuel oil must comply with ASTM specification
3.22D975-07b. (a) When diesel fuel oil is not blended with biodiesel, it must comply with
3.23ASTM specification D975-12a.
3.24(b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel
3.25component must comply with ASTM specification D975-12a and the biodiesel component
3.26must comply with ASTM specification D675-11b.

3.27    Sec. 8. Minnesota Statutes 2012, section 239.761, subdivision 10, is amended to read:
3.28    Subd. 10. Aviation gasoline. Aviation gasoline must comply with ASTM
3.29specification D910-07a D910-11.

3.30    Sec. 9. Minnesota Statutes 2012, section 239.761, subdivision 11, is amended to read:
3.31    Subd. 11. Aviation turbine fuel, jet fuel. Aviation turbine fuel and jet fuel must
3.32comply with ASTM specification D1655-08a D1655-12.

4.1    Sec. 10. Minnesota Statutes 2012, section 239.761, subdivision 13, is amended to read:
4.2    Subd. 13. E85. A blend of ethanol and gasoline, containing at least 60 percent
4.3 ethanol and not more than 85 percent ethanol, produced for use as a motor fuel in
4.4alternative fuel vehicles as defined in section 296A.01, subdivision 5, must comply with
4.5ASTM specification D5798-07 D5798-11.

4.6    Sec. 11. Minnesota Statutes 2012, section 239.761, subdivision 16, is amended to read:
4.7    Subd. 16. Biodiesel fuel definition. "Biodiesel fuel" means a renewable,
4.8biodegradable, mono alkyl ester combustible liquid that is derived from agricultural plant
4.9oils or animal fats and that meets American Society for Testing and Materials (ASTM)
4.10specification D6751-08 D6751-11b for Biodiesel Fuel (B100) Blend Stock for Distillate
4.11Fuels.

4.12    Sec. 12. Minnesota Statutes 2012, section 239.761, subdivision 17, is amended to read:
4.13    Subd. 17. Grade 82 unleaded aviation gasoline. Grade 82 unleaded aviation
4.14gasoline must comply with ASTM specification D6227-04a D6227-12.

4.15    Sec. 13. Minnesota Statutes 2012, section 239.761, is amended by adding a subdivision
4.16to read:
4.17    Subd. 18. Minimum octane rating. The minimum (R+M)/2 octane rating grades
4.18for petroleum products under subdivision 3, 4, 4a, 4b, or 6 sold to an end user shall be
4.19no less than 87.

4.20    Sec. 14. Minnesota Statutes 2012, section 239.77, subdivision 1, is amended to read:
4.21    Subdivision 1. Biodiesel blend and fuel. (a) "Biodiesel blend" is a blend of diesel
4.22fuel and biodiesel fuel between six percent and 20 percent for on-road and off-road
4.23diesel-fueled vehicle use. Biodiesel blend must comply with ASTM specification
4.24D7467-08 D7467-10.
4.25(b) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible
4.26liquid fuel that is derived from agricultural and other plant oils or animal fats and that
4.27meets American Society for Testing and Materials specification D6751-08 D6751-11b for
4.28Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.
4.29    (c) Biodiesel produced from palm oil is not biodiesel fuel for the purposes of this
4.30section, unless the palm oil is contained within waste oil and grease collected within the
4.31United States or Canada.

5.1    Sec. 15. Minnesota Statutes 2012, section 239.77, subdivision 4, is amended to read:
5.2    Subd. 4. Disclosure. (a) A refinery or terminal shall provide, at the time diesel fuel
5.3is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
5.4to the person who receives the fuel. For biodiesel-blended products, the bill of lading or
5.5shipping manifest must disclose biodiesel content, stating volume percentage, gallons of
5.6biodiesel per gallons of petroleum diesel base-stock, or an ASTM "Bxx" designation
5.7where "xx" denotes the volume percent biodiesel included in the blended product. This
5.8subdivision does not apply to sales or transfers of biodiesel blend stock between refineries,
5.9between terminals, or between a refinery and a terminal.
5.10(b) A delivery ticket required under section 239.092 for a biodiesel blend must state
5.11the volume percent of biodiesel blended into the diesel fuel delivered through a meter into
5.12a storage tank used for dispensing into motor vehicles powered by an internal combustion
5.13engine and not exempt under subdivision 3.

5.14    Sec. 16. Minnesota Statutes 2012, section 239.791, subdivision 8, is amended to read:
5.15    Subd. 8. Disclosure. (a) A refinery or terminal, shall provide, at the time gasoline
5.16is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
5.17to the person who receives the gasoline. For oxygenated gasoline, the bill of lading or
5.18shipping manifest must include the identity and the volume percentage or gallons of
5.19oxygenate included in the gasoline, and it must state: "This fuel contains an oxygenate.
5.20Do not blend this fuel with ethanol or with any other oxygenate." For nonoxygenated
5.21gasoline sold or transferred after September 30, 1997, the bill or manifest must state:
5.22"This fuel is not oxygenated. It must not be sold at retail in Minnesota." This subdivision
5.23does not apply to sales or transfers of gasoline between refineries, between terminals, or
5.24between a refinery and a terminal.
5.25(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
5.26must state the volume percent of biofuel blended into gasoline delivered through a meter
5.27into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14.

5.28    Sec. 17. EFFECTIVE DATE.
5.29Sections 1 to 16 are effective the day following final enactment.
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