View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
S1364.....................................................by TRANSPORTATION RENEWABLE FUEL STANDARDS - ETHANOL - Adds to existing law to provide an ethanol blended fuel standard; to provide an exemption; and to provide application to federally regulated storage tanks in certain counties for a certain period. 02/08 Senate intro - 1st rdg - to printing 02/09 Rpt prt - to Transp Rpt out - rec d/p - to 2nd rdg 02/10 2nd rdg - to 3rd rdg 02/23 3rd rdg - PASSED - 27-8-0 AYES -- Andreason, Brandt(Harper), Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Corder, Darrington, Fulcher, Gannon, Geddes, Hill, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stennett, Sweet, Werk, Williams NAYS -- Broadsword, Compton, Davis, Goedde, Jorgenson, Kelly, Keough, Stegner Absent and excused -- None Floor Sponsors - Williams, McKenzie, Langhorst & McGee Title apvd - to House 02/24 House intro - 1st rdg - to Transp 02/28 Rpt out - Ref'd to Env
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE SENATE SENATE BILL NO. 1364 BY TRANSPORTATION COMMITTEE 1 AN ACT 2 RELATING TO MOTOR FUELS; AMENDING CHAPTER 2, TITLE 71, IDAHO CODE, BY THE 3 ADDITION OF A NEW SECTION 71-241A, IDAHO CODE, TO PROVIDE FOR RENEWABLE 4 FUEL STANDARD, TO DEFINE A TERM, TO PROVIDE AN ETHANOL BLENDED FUEL STAN- 5 DARD, TO PROVIDE AN EXEMPTION TO THE ETHANOL BLENDED FUEL STANDARD AND TO 6 PROVIDE APPLICATION TO FEDERALLY REGULATED STORAGE TANKS IN CERTAIN COUN- 7 TIES FOR A CERTAIN PERIOD. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Chapter 2, Title 71, Idaho Code, be, and the same is 10 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 11 ignated as Section 71-241A, Idaho Code, and to read as follows: 12 71-241A. RENEWABLE FUEL STANDARD -- EXEMPTION -- EXCEPTION. (1) The 13 renewable fuel standard as set forth in this section shall come into full 14 force and effect at the beginning of the next fiscal quarter that is at least 15 sixty (60) days after the director of the department of agriculture certifies 16 that there is a production facility or facilities producing ethanol with a 17 combined capacity of at least thirty million (30,000,000) gallons on an annual 18 basis within the state of Idaho. 19 (2) For purposes of this section, "person responsible for the product" 20 means a person or persons, corporation, partnership, stock company, society, 21 association, or an agent or employee who processes, blends, holds, stores, 22 imports, transfers, distributes, offers for sale or use, or sells petroleum 23 products in Idaho and who possesses petroleum products at the time they are 24 sampled or inspected by the director. 25 (3) (a) Except as set forth in subsections (4) and (5) of this section, 26 on and after implementation of the renewable fuel standard, a person 27 responsible for the product shall ensure that all gasoline sold or offered 28 for sale in Idaho must contain at least ten percent (10%) denatured etha- 29 nol by volume. 30 (b) For purposes of enforcing the minimum ethanol requirement of subsec- 31 tion (3)(a) of this section, a gasoline/ethanol blend will be construed to 32 be in compliance if the ethanol content, exclusive of denaturants and per- 33 mitted contaminants, comprises not less than nine and two-tenths percent 34 (9.2%) by volume of agriculturally derived denatured ethanol that complies 35 with the following criteria and any applicable amendments to the criteria 36 promulgated or published after July 1, 2006: 37 (i) Denatured ethanol that is to be blended with gasoline must be 38 agriculturally derived and must comply with ASTM specification D4806. 39 This includes the requirement that ethanol may be denatured only as 40 specified in 27 CFR 20 and 27 CFR 21; 41 (ii) The blend shall comply with the volatility requirements in 40 42 CFR 80; 43 (iii) The blend shall comply with ASTM specification D4814 or the 2 1 gasoline base stock from which a gasoline/ethanol blend was produced 2 and must comply with ASTM specification D4814; and 3 (iv) The blend shall not be blended with casinghead gasoline, 4 absorption gasoline, condensation gasoline, drip gasoline, or natu- 5 ral gasoline after the gasoline/ethanol blend has been sold, trans- 6 ferred, or otherwise removed from a refinery or terminal. 7 (4) A person responsible for the product may hold, store, import, trans- 8 fer, distribute, offer for sale or use, or sell the petroleum product that is 9 not blended in accordance with subsection (3) of this section, so long as the 10 product is for use in aircraft legally authorized to use motor vehicle fuel. 11 The person responsible for the product shall comply with the following: 12 (a) The petroleum product shall be unleaded premium grade with an octane 13 rating of ninety-one (91) or greater; 14 (b) The outlet shall use no more than one (1) storage tank for the 15 petroleum product under this exemption; 16 (c) The pump stand dispensing the petroleum product under this exemption 17 must be posted with a permanent notice stating: "NONOXYGENATED GASOLINE. 18 FOR USE IN AIRCRAFT LEGALLY AUTHORIZED TO USE MOTOR VEHICLE FUEL ONLY." 19 This notice must be posted at least two (2) feet above the ground. 20 (5) (a) The person responsible for the product shall ensure that ethanol 21 blended fuel, as set forth in subsection (3) of this section, shall not be 22 delivered to federally regulated storage tanks within Ada and Canyon coun- 23 ties that have not implemented stage one vapor recovery during June 15 24 through September 15 of each year. During this period, only nonblended 25 fuel may be delivered to federally regulated tanks without stage one vapor 26 recovery. 27 (b) A person responsible for the product may allow delivery of ethanol 28 blended fuel, as set forth in subsection (3) of this section within Ada 29 and Canyon counties to federally regulated storage tanks that have not 30 implemented stage one vapor recovery during the period June 15 through 31 September 15 so long as the federally regulated tank has received deliv- 32 ery of ethanol blended fuel prior to January 1, 2007, and has done so con- 33 sistently until the renewable fuel standard has been implemented.
STATEMENT OF PURPOSE RS 15914 This legislation will create a new section of Idaho Code to implement a renewable fuel standard once Idaho is producing 30 million gallons of ethanol. The standard specifies that gasoline sold for motor vehicle use in the state shall contain at least 10.0 percent ethanol. The production of ethanol in Idaho will significantly strengthen our economy, particularly in rural areas, providing jobs, local tax base and new markets for farm crops. Using ethanol-blended fuel in Idaho will reduce our dependence on imported fuels and will also reduce emissions from motor vehicles and the adverse impacts of air pollution within the State FISCAL IMPACT There is no fiscal impact to the general fund of the state of Idaho. By adoption of the companion piece of legislation, which repeals the current state fuel tax deduction for ethanol blended fuels upon implementation of the renewable fuel standard, there will be an increase in state fuel tax revenues of $750,000 per year, which is currently being foregone under the deduction. There is a possibility that there will be gasoline retailers who voluntarily use ethanol blended fuels prior to the implementation of the renewable fuel standard which would reduce the state fuel tax revenues by 2.5 cents per gallon of ethanol blended fuel until the deduction is removed. Without adoption of the companion piece of legislation, this bill would result in a $15.25 million reduction in state fuel taxes when the renewable fuel standard is implemented. Sponsors: Senator Stan Williams Representative JoAn Wood Senator Curt McKenzie Representative Ann Rydalch Senator John McGee Representative Stan Bastian Senator David Langhorst Representative Ken Roberts Representative Elaine Smith Contact: Russ Hendricks, 342-2688 STATEMENT OF PURPOSE/FISCAL NOTE S 1364