Bill Text: MN SF832 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Biodiesel diesel fuel minimum content mandate temporary suspension
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-16 - Referred to Agriculture and Rural Economies [SF832 Detail]
Download: Minnesota-2011-SF832-Introduced.html
1.2relating to agriculture; providing for temporary suspension of biodiesel mandate
1.3in certain situation;amending Minnesota Statutes 2010, section 239.77,
1.4subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 239.77, subdivision 2, is amended to read:
1.7 Subd. 2. Minimum content. (a) Except as otherwise provided in this section, all
1.8diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines
1.9must contain at least the stated percentage of biodiesel fuel oil by volume on and after
1.10the following dates:
1.15 The minimum content levels in clauses (3) and (4) are effective during the months of
1.16April, May, June, July, August, September, and October only. The minimum content for
1.17the remainder of the year is five percent. However, if the commissioners of agriculture,
1.18commerce, and pollution control determine, after consultation with the biodiesel task
1.19force and other technical experts, that an American Society for Testing and Materials
1.20specification or equivalent federal standard exists for the specified biodiesel blend level in
1.21those clauses that adequately addresses technical issues associated with Minnesota's cold
1.22weather and publish a notice in the State Register to that effect, the commissioners may
1.23allow the specified biodiesel blend level in those clauses to be effective year-round.
1.24 (b) The minimum content levels in paragraph (a), clauses (3) and (4), become
1.25effective on the date specified only if the commissioners of agriculture, commerce,
2.1and pollution control publish notice in the State Register and provide written notice to
2.2the chairs of the house of representatives and senate committees with jurisdiction over
2.3agriculture, commerce, and transportation policy and finance, at least 270 days prior to the
2.4date of each scheduled increase, that all of the following conditions have been met and the
2.5state is prepared to move to the next scheduled minimum content level:
2.6 (1) an American Society for Testing and Materials specification or equivalent federal
2.7standard exists for the next minimum diesel-biodiesel blend;
2.8 (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.9in this state from feedstock with at least 75 percent that is produced in the United States
2.10and Canada is equal to at least 50 percent of anticipated demand at the next minimum
2.11content level;
2.12 (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.13promote biodiesel quality and avoid any potential economic disruption; and
2.14 (4) at least five percent of the amount of biodiesel necessary for that minimum
2.15content level will be produced from a biological resource other than an agricultural
2.16resource traditionally grown or raised in the state, including, but not limited to, algae
2.17cultivated for biofuels production, waste oils, and tallow.
2.18 The condition in clause (2) may be waived if the commissioner finds that, due to
2.19weather-related conditions, the necessary feed stock is unavailable.
2.20 The condition in clause (4) may be waived if the commissioners find that the use of
2.21these nontraditional feedstocks would be uneconomic under market conditions existing at
2.22the time notice is given under this paragraph.
2.23 (c) The commissioners of agriculture, commerce, and pollution control must consult
2.24with the biodiesel task force when assessing and certifying conditions in paragraph (b),
2.25and in general must seek the guidance of the biodiesel task force regarding biodiesel
2.26labeling, enforcement, and other related issues.
2.27 (d) During a period of biodiesel fuel shortage or a problem with biodiesel quality
2.28that negatively affects the availability of biodiesel fuel, the commissioner of commerce
2.29may temporarily suspend the minimum content requirement in subdivision 2 until there
2.30is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum
2.31content requirement.
2.32 (e) By February 1, 2012, and periodically thereafter, the commissioner of commerce
2.33shall determine the wholesale diesel price at various pipeline and refinery terminals in the
2.34region, and the biodiesel price determined after credits and incentives are subtracted at
2.35biodiesel plants in the region. The commissioner shall report wholesale price differences to
2.36the governor who, after consultation with the commissioners of commerce and agriculture,
3.1may by executive order adjust the biodiesel mandate if a price disparity reported by the
3.2commissioner will cause economic hardship to retailers of diesel fuel in this state. Any
3.3adjustment must be for a specified period of time, after which the percentage of biodiesel
3.4fuel to be blended into diesel fuel returns to the amount required in subdivision 2. The
3.5biodiesel mandate must not be adjusted to less than five percent.
3.6(f) When the commissioner of commerce determines that the wholesale price
3.7for diesel fuel in Minnesota is at least five cents per gallon higher than the wholesale
3.8price in an adjoining state or province, the commissioner shall temporarily suspend the
3.9minimum content requirement for retail stations within 50 miles of the border of the state
3.10or province. The temporary suspension shall expire when the wholesale price of diesel
3.11fuel in Minnesota is less than five cents per gallon higher than the wholesale price of
3.12diesel fuel in the adjoining state or province.
1.3in certain situation;amending Minnesota Statutes 2010, section 239.77,
1.4subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 239.77, subdivision 2, is amended to read:
1.7 Subd. 2. Minimum content. (a) Except as otherwise provided in this section, all
1.8diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines
1.9must contain at least the stated percentage of biodiesel fuel oil by volume on and after
1.10the following dates:
| 1.11 |
(1) |
September 29, 2005 |
2 percent |
|
| 1.12 |
(2) |
May 1, 2009 |
5 percent |
|
| 1.13 |
(3) |
May 1, 2012 |
10 percent |
|
| 1.14 |
(4) |
May 1, 2015 |
20 percent |
1.16April, May, June, July, August, September, and October only. The minimum content for
1.17the remainder of the year is five percent. However, if the commissioners of agriculture,
1.18commerce, and pollution control determine, after consultation with the biodiesel task
1.19force and other technical experts, that an American Society for Testing and Materials
1.20specification or equivalent federal standard exists for the specified biodiesel blend level in
1.21those clauses that adequately addresses technical issues associated with Minnesota's cold
1.22weather and publish a notice in the State Register to that effect, the commissioners may
1.23allow the specified biodiesel blend level in those clauses to be effective year-round.
1.24 (b) The minimum content levels in paragraph (a), clauses (3) and (4), become
1.25effective on the date specified only if the commissioners of agriculture, commerce,
2.1and pollution control publish notice in the State Register and provide written notice to
2.2the chairs of the house of representatives and senate committees with jurisdiction over
2.3agriculture, commerce, and transportation policy and finance, at least 270 days prior to the
2.4date of each scheduled increase, that all of the following conditions have been met and the
2.5state is prepared to move to the next scheduled minimum content level:
2.6 (1) an American Society for Testing and Materials specification or equivalent federal
2.7standard exists for the next minimum diesel-biodiesel blend;
2.8 (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.9in this state from feedstock with at least 75 percent that is produced in the United States
2.10and Canada is equal to at least 50 percent of anticipated demand at the next minimum
2.11content level;
2.12 (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.13promote biodiesel quality and avoid any potential economic disruption; and
2.14 (4) at least five percent of the amount of biodiesel necessary for that minimum
2.15content level will be produced from a biological resource other than an agricultural
2.16resource traditionally grown or raised in the state, including, but not limited to, algae
2.17cultivated for biofuels production, waste oils, and tallow.
2.18 The condition in clause (2) may be waived if the commissioner finds that, due to
2.19weather-related conditions, the necessary feed stock is unavailable.
2.20 The condition in clause (4) may be waived if the commissioners find that the use of
2.21these nontraditional feedstocks would be uneconomic under market conditions existing at
2.22the time notice is given under this paragraph.
2.23 (c) The commissioners of agriculture, commerce, and pollution control must consult
2.24with the biodiesel task force when assessing and certifying conditions in paragraph (b),
2.25and in general must seek the guidance of the biodiesel task force regarding biodiesel
2.26labeling, enforcement, and other related issues.
2.27 (d) During a period of biodiesel fuel shortage or a problem with biodiesel quality
2.28that negatively affects the availability of biodiesel fuel, the commissioner of commerce
2.29may temporarily suspend the minimum content requirement in subdivision 2 until there
2.30is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum
2.31content requirement.
2.32 (e) By February 1, 2012, and periodically thereafter, the commissioner of commerce
2.33shall determine the wholesale diesel price at various pipeline and refinery terminals in the
2.34region, and the biodiesel price determined after credits and incentives are subtracted at
2.35biodiesel plants in the region. The commissioner shall report wholesale price differences to
2.36the governor who, after consultation with the commissioners of commerce and agriculture,
3.1may by executive order adjust the biodiesel mandate if a price disparity reported by the
3.2commissioner will cause economic hardship to retailers of diesel fuel in this state. Any
3.3adjustment must be for a specified period of time, after which the percentage of biodiesel
3.4fuel to be blended into diesel fuel returns to the amount required in subdivision 2. The
3.5biodiesel mandate must not be adjusted to less than five percent.
3.6(f) When the commissioner of commerce determines that the wholesale price
3.7for diesel fuel in Minnesota is at least five cents per gallon higher than the wholesale
3.8price in an adjoining state or province, the commissioner shall temporarily suspend the
3.9minimum content requirement for retail stations within 50 miles of the border of the state
3.10or province. The temporary suspension shall expire when the wholesale price of diesel
3.11fuel in Minnesota is less than five cents per gallon higher than the wholesale price of
3.12diesel fuel in the adjoining state or province.
