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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 - 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
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