PRINTER'S NO. 1667
No. 1202 Session of 2007
INTRODUCED BY GERBER, GEORGE, BENNINGTON, CALTAGIRONE, CONKLIN, CURRY, DePASQUALE, DeWEESE, EACHUS, FABRIZIO, FREEMAN, GIBBONS, GOODMAN, HARHAI, HARKINS, HORNAMAN, JAMES, JOSEPHS, KORTZ, MAHONEY, MANDERINO, McILVAINE SMITH, MUNDY, M. O'BRIEN, PETRONE, PRESTON, SANTONI, SHIMKUS, K. SMITH, M. SMITH, STABACK, SURRA, TANGRETTI, THOMAS, VITALI, WALKO AND YUDICHAK, MAY 24, 2007
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MAY 24, 2007
AN ACT 1 Providing for the sale of transportation fuels containing clean, 2 renewable or alternative fuel content. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the Clean Fuels 7 and Energy Independence Act. 8 Section 2. Purpose. 9 The purpose of this act is to do the following: 10 (1) Establish mandates for renewable content in on-road 11 transportation fuels sold at retail in this Commonwealth. 12 (2) Improve air and water quality and reduce production 13 of greenhouse gases and other environmentally harmful 14 emissions in this Commonwealth. 15 (3) Promote energy independence.
1 (4) Stimulate this Commonwealth's economy by increasing 2 demand for homegrown alternative fuel, creating production 3 facility construction jobs and creating long-term 4 manufacturing jobs. 5 (5) Provide alternative fuel sources that can be used to 6 protect consumers in this Commonwealth, both individuals and 7 businesses, from the volatile and ever-increasing costs of 8 traditional fuel sources. 9 Section 3. Definitions. 10 The following words and phrases when used in this act shall 11 have the meanings given to them in this section unless the 12 context clearly indicates otherwise: 13 "Biodiesel." A renewable, biodegradable, mono alkyl ester 14 combustible liquid fuel that meets American Society for Testing 15 and Materials Specification D6751 or its successor standard, 16 Standard Specification for Biodiesel Fuel Blend Stock (B100) for 17 Middle Distillate Fuels. 18 "Department." The Department of Environmental Protection of 19 the Commonwealth. 20 "Ethanol." An ethyl alcohol that has a purity of at least 21 99%, exclusive of added denaturants, that adheres to all of the 22 following standards: 23 (1) It has been denatured in conformity with a method 24 approved by the Bureau of Alcohol, Tobacco, Firearms and 25 Explosives of the United States Department of Justice, as 26 specified in 27 CFR Pts. 20 (relating to distribution and use 27 of denatured alcohol and rum) and 21 (relating to formulas 28 for denatured alcohol and rum). 29 (2) It meets all of the requirements of American Society 30 for Testing and Materials Specification D4806 or its 20070H1202B1667 - 2 -
1 successor standard, Standard Specification for Denatured Fuel 2 Ethanol for Blending with Gasolines for Use as Automotive 3 Spark-Ignition Engine Fuel. 4 "E85." A petroleum product that is a blend of agriculturally 5 derived denatured ethanol and gasoline or natural gasoline that 6 typically contains 85% ethanol by volume. E85 produced for use 7 as a motor fuel shall comply with American Society for Testing 8 and Materials Specification D5798 or its successor standard. 9 Section 4. Biodiesel content in diesel fuel sold for on-road 10 use. 11 (a) Volume standards.--The following standards shall apply: 12 (1) All diesel fuel sold or offered for sale in this 13 Commonwealth for use in on-road compression ignition engines 14 must contain at least 2% biodiesel by volume, one year after 15 in-State production volume of 30 million gallons of biodiesel 16 has been reached and sustained for three months on an 17 annualized basis. 18 (2) All diesel fuel sold or offered for sale in this 19 Commonwealth for use in on-road compression ignition engines 20 must contain at least 5% biodiesel by volume, one year after 21 in-State production volume of 75 million gallons of biodiesel 22 has been reached and sustained for three months on an 23 annualized basis. 24 (3) All diesel fuel sold or offered for sale in this 25 Commonwealth for use in on-road compression ignition engines 26 must contain at least 10% biodiesel by volume, one year after 27 in-State production volume of 150 million gallons of 28 biodiesel has been reached and sustained for three months on 29 an annualized basis, provided vehicle manufacturers recognize 30 engine warranties associated with the use of biodiesel blends 20070H1202B1667 - 3 -
1 10% or greater. 2 (4) All diesel fuel sold or offered for sale in this 3 Commonwealth for use in on-road compression ignition engines 4 must contain at least 20% biodiesel by volume, one year after 5 in-State production volume of 300 million gallons of 6 biodiesel has been reached and sustained for three months on 7 an annualized basis, provided vehicle manufacturers recognize 8 engine warranties associated with the use of biodiesel blends 9 20% or greater. 10 (b) Coal-to-liquids substitution.--Nonsulfur diesel fuel 11 derived from coal can be used in place of biodiesel to meet the 12 requirements of this section provided the fuel's carbon 13 emissions are fully offset, either through carbon sequestration 14 or by participating in carbon offset programs as provided by 15 section 6(b)(1). 16 Section 5. Ethanol content in gasoline sold for on-road use. 17 (a) Ethanol content required.--All gasoline sold or offered 18 for sale in this Commonwealth for use in on-road internal 19 combustion engines must contain at least 10% ethanol by volume 20 within one year after the following conditions have been met: 21 (1) An in-State production volume of 200 million gallons 22 of ethanol has been reached and sustained for three months on 23 an annualized basis. 24 (2) The department and the Department of Transportation 25 have made a determination, after a public hearing process, 26 that infrastructure sufficient to accommodate the 27 distribution and sale of gasoline containing 10% ethanol by 28 volume is in place Statewide. In making this determination 29 the department and the Department of Transportation shall 30 assess rail capability Statewide, including terminal 20070H1202B1667 - 4 -
1 facilities capable of handling volumes of ethanol sufficient 2 to meet the requirements of this act. 3 (b) Reporting required.--If the department and the 4 Department of Transportation determine that the necessary 5 infrastructure is not in place Statewide under subsection 6 (a)(2), the agencies shall, within 60 days following the 7 determination and annually thereafter, if necessary, report to 8 the Governor and the General Assembly as follows: 9 (1) Identify areas where necessary infrastructure is not 10 in place. 11 (2) Describe actions planned or being taken to install 12 the necessary infrastructure. 13 (3) Identify any impediments to the installation of the 14 necessary infrastructure. 15 (4) Make recommendations for the installation of the 16 necessary infrastructure. 17 (c) Gasoline ethanol blend standard.--A gasoline/ethanol 18 blend will be construed to be in compliance with this section if 19 the ethanol content, exclusive of denaturants and permitted 20 contaminants, is not less than 9.2% by volume and not more than 21 10% by volume of the blend as determined by an appropriate 22 United States Environmental Protection Agency or American 23 Society for Testing and Materials standard method of analysis of 24 alcohol/ether content in motor fuels. 25 (d) Construction.--Nothing in this section shall prohibit 26 the sale of E85 or gasoline with concentrations of ethanol 27 greater than 10%. 28 Section 6. Agency responsibilities. 29 (a) Department of Agriculture.--With the exception of 30 section 4(b), the Department of Agriculture shall ensure 20070H1202B1667 - 5 -
1 compliance with this act and, in consultation with the 2 department and the Department of Transportation, promulgate 3 regulations as necessary to enforce the requirements of this 4 act. 5 (b) Department.-- 6 (1) The department shall promulgate and ensure 7 compliance with regulations for achieving the carbon offset 8 requirements of section 4(b). 9 (2) The department shall conduct a study to evaluate the 10 effects this act has on the ability of this Commonwealth to 11 attain and maintain the National Ambient Air Quality 12 Standards. 13 Section 7. Effective date. 14 This act shall take effect immediately. E23L27BIL/20070H1202B1667 - 6 -