Print Friendly SENATE BILL NO. 1004 – Ethanol blended fuel standard/exmpt
SENATE BILL NO. 1004
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ETHANOL BLENDED FUEL - Adds to existing law to provide that, beginning on
April 1, 2010, gasoline for motor vehicle use sold in Idaho must be blended
with at least ten percent by volume agriculturally derived denatured
01/14 Senate intro - 1st rdg - to printing
01/17 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1004
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 72-241A, IDAHO CODE, TO PROVIDE LEGISLATIVE
4 INTENT, TO DEFINE A TERM, TO PROVIDE AN ETHANOL BLENDED FUEL STANDARD AND
5 TO PROVIDE AN EXEMPTION TO THE ETHANOL BLENDED FUEL STANDARDS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Chapter 2, Title 71, Idaho Code, be, and the same is
8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
9 ignated as Section 71-241A, Idaho Code, and to read as follows:
10 71-241A. ETHANOL BLENDED FUEL STANDARD -- EXEMPTION. (1) It is the intent
11 of the legislature of the state of Idaho to promote the use of ethanol blended
12 fuel to protect the air quality of the state, to enhance the environment and
13 to stimulate the economy of the rural areas of the state. The legislature
14 finds that protection of air quality is important to sustain growth of the
15 state's economy, and requires action that will not only maintain, but will
16 improve the environment. Use of ethanol blended fuel will significantly
17 reduce emissions from all motor vehicles and will reduce contaminants result-
18 ing from combustion of conventional fuels. Furthermore, it is the intent of
19 the legislature that the ethanol used in Idaho fuels be produced in Idaho from
20 Idaho grown feedstock which will significantly strengthen the economy, partic-
21 ularly in rural areas of the state, while reducing reliance on imported fuels.
22 (2) For purposes of this section, "person responsible for the product"
23 means a person or persons, corporation, partnership, stock company, society,
24 association, or an agent or employee who processes, blends, holds, stores,
25 imports, transfers, distributes, offers for sale or use, or sells petroleum
26 products in Idaho and who possesses petroleum products at the time they are
27 sampled or inspected by the director.
28 (3) (a) On and after April 1, 2010, a person responsible for the product
29 shall ensure that all gasoline sold or offered for sale in Idaho must con-
30 tain at least ten percent (10%) denatured ethanol by volume.
31 (b) For purposes of enforcing the minimum ethanol requirement of subsec-
32 tion (3)(a) of this section, a gasoline/ethanol blend will be construed to
33 be in compliance if the ethanol content, exclusive of denaturants and per-
34 mitted contaminants, comprises not less than nine and two-tenths percent
35 (9.2%) by volume of agriculturally derived, denatured ethanol that com-
36 plies with the following criteria and any applicable amendments to the
37 criteria promulgated or published after July 1, 2005:
38 (i) Denatured ethanol that is to be blended with gasoline must be
39 agriculturally derived and must comply with ASTM specification D4806.
40 This includes the requirement that ethanol may be denatured only as
41 specified in 27 CFR 20 and 27 CFR 21;
42 (ii) The blend shall comply with the volatility requirements in 40
43 CFR 80;
1 (iii) The blend shall comply with ASTM specification D4814 or the
2 gasoline base stock from which a gasoline/ethanol blend was produced
3 and must comply with ASTM specification D4814; and
4 (iv) The blend shall not be blended with casinghead gasoline,
5 absorption gasoline, condensation gasoline, drip gasoline, or natural
6 gasoline after the gasoline/ethanol blend has been sold, transferred,
7 or otherwise removed from a refinery or terminal.
8 (4) A person responsible for the product may hold, store, import, trans-
9 fer, distribute, offer for sale or use, or sell the petroleum product that is
10 not blended in accordance with subsection (3) of this section, so long as the
11 product is for use in aircraft legally authorized to use motor vehicle fuel.
12 The person responsible for the product shall comply with the following:
13 (a) The petroleum product shall be unleaded premium grade with an octane
14 rating of ninety-one (91) or greater;
15 (b) The outlet shall use no more than one (1) dispensing pump and no more
16 than one (1) storage tank for the petroleum product under this exemption;
17 (c) The pump dispensing the petroleum product under this exemption must
18 be posted with a permanent notice stating: "NONOXYGENATED GASOLINE. FOR
19 USE IN AIRCRAFT LEGALLY AUTHORIZED TO USE MOTOR VEHICLE FUEL ONLY." This
20 notice must be posted at least two (2) feet above the ground.
STATEMENT OF PURPOSE
This legislation will amend the Idaho Code to implement a
renewable fuel standard and provide that beginning on April
1, 2010 gasoline for motor vehicle use sold in the state of
Idaho must be blended with at least 10.0 percent by volume,
agriculturally derived, denatured ethanol. Use of ethanol-
blended fuel will significantly reduce emissions from motor
vehicles, thus minimizing the adverse impacts of air
pollution in the State. Using ethanol-blended fuel in motor
vehicles in Idaho will reduce our dependence on imported
fuels and will significantly strengthen our economy,
particularly in rural areas.
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 fuel tax deduction
for ethanol blended fuels on April 1, 2010, there will be an
increase in the state fuel tax revenues of $750,000 in FY11.
Without adoption of the companion piece of legislation, this
bill would result in a $15.5 million reduction in state fuel
taxes in FY11 when the renewable fuel standard is fully
implemented. There is a possibility that there will be
gasoline retailers who voluntarily use ethanol blended fuels
prior to the implementation date of April 1, 2010 which
would reduce the state fuel tax revenues by 2.5 cents per
gallon of ethanol blended fuel.
Senator Williams Representative Wood
Senator Andreason Representative Rydalch
Senator McKenzie Representative Collins
Contact: Russ Hendricks, 342-2688 S1004