2006 Legislation
Print Friendly

SENATE BILL NO. 1364 – Fuels, renewable, standard

SENATE BILL NO. 1364

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN 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 / Fiscal Impact


                      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