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S1267.....................................................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.
01/18 Senate intro - 1st rdg - to printing
01/19 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1267
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 STANDARDS, TO DEFINE A TERM, TO PROVIDE AN ETHANOL BLENDED FUEL
5 STANDARD, TO PROVIDE AN EXEMPTION TO THE ETHANOL BLENDED FUEL STANDARDS
6 AND TO PROVIDE APPLICATION TO FEDERALLY REGULATED STORAGE TANKS IN CERTAIN
7 COUNTIES 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.
13 (1) (a) The renewable fuel standard as set forth in this section shall
14 come into full force and effect at the beginning of the next fiscal quar-
15 ter that is at least sixty (60) days after the director of the department
16 of agriculture certifies that there is a production facility or facilities
17 that are producing ethanol with a combined capacity of at least thirty
18 million (30,000,000) gallons on an annual basis within the state of Idaho.
19 (b) For the purposes of implementing the renewable fuel standard, all
20 ethanol that is produced from Idaho grown feedstock at a facility located
21 outside the state but within five (5) miles of the Idaho border, shall
22 qualify as Idaho produced ethanol.
23 (2) For purposes of this section, "person responsible for the product"
24 means a person or persons, corporation, partnership, stock company, society,
25 association, or an agent or employee who processes, blends, holds, stores,
26 imports, transfers, distributes, offers for sale or use, or sells petroleum
27 products in Idaho and who possesses petroleum products at the time they are
28 sampled or inspected by the director.
29 (3) (a) Except as set forth in subsections (4) and (5) of this section,
30 on and after implementation of the renewable fuel standard, a person
31 responsible for the product shall ensure that all gasoline sold or offered
32 for sale in Idaho must contain at least ten percent (10%) denatured etha-
33 nol by volume.
34 (b) For purposes of enforcing the minimum ethanol requirement of subsec-
35 tion (3)(a) of this section, a gasoline/ethanol blend will be construed to
36 be in compliance if the ethanol content, exclusive of denaturants and per-
37 mitted contaminants, comprises not less than nine and two-tenths percent
38 (9.2%) by volume of agriculturally derived denatured ethanol that complies
39 with the following criteria and any applicable amendments to the criteria
40 promulgated or published after July 1, 2006:
41 (i) Denatured ethanol that is to be blended with gasoline must be
42 agriculturally derived and must comply with ASTM specification D4806.
43 This includes the requirement that ethanol may be denatured only as
2
1 specified in 27 CFR 20 and 27 CFR 21;
2 (ii) The blend shall comply with the volatility requirements in 40
3 CFR 80;
4 (iii) The blend shall comply with ASTM specification D4814 or the
5 gasoline base stock from which a gasoline/ethanol blend was produced
6 and must comply with ASTM specification D4814; and
7 (iv) The blend shall not be blended with casinghead gasoline,
8 absorption gasoline, condensation gasoline, drip gasoline, or natu-
9 ral gasoline after the gasoline/ethanol blend has been sold, trans-
10 ferred, or otherwise removed from a refinery or terminal.
11 (4) A person responsible for the product may hold, store, import, trans-
12 fer, distribute, offer for sale or use, or sell the petroleum product that is
13 not blended in accordance with subsection (3) of this section, so long as the
14 product is for use in aircraft legally authorized to use motor vehicle fuel.
15 The person responsible for the product shall comply with the following:
16 (a) The petroleum product shall be unleaded premium grade with an octane
17 rating of ninety-one (91) or greater;
18 (b) The outlet shall use no more than one (1) storage tank for the
19 petroleum product under this exemption;
20 (c) The pump stand dispensing the petroleum product under this exemption
21 must be posted with a permanent notice stating: "NONOXYGENATED GASOLINE.
22 FOR USE IN AIRCRAFT LEGALLY AUTHORIZED TO USE MOTOR VEHICLE FUEL ONLY."
23 This notice must be posted at least two (2) feet above the ground.
24 (5) (a) The person responsible for the product shall ensure that ethanol
25 blended fuel, as set forth in subsection (3) of this section, shall not be
26 delivered to federally regulated storage tanks within Ada and Canyon coun-
27 ties that have not implemented stage one vapor recovery during June 15
28 through September 15 of each year. During this period, only nonblended
29 fuel may be delivered to federally regulated tanks without stage one vapor
30 recovery.
31 (b) A person responsible for the product may allow delivery of ethanol
32 blended fuel, as set forth in subsection (3) of this section within Ada
33 and Canyon counties to federally regulated storage tanks that have not
34 implemented stage one vapor recovery during the period of June 15 through
35 September 15 so long as the federally regulated tank has received deliv-
36 ery of ethanol blended fuel prior to January 1, 2007, and has done so con-
37 sistently until the renewable fuel standard has been implemented.
STATEMENT OF PURPOSE
RS15610
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 1267