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                                                      PRINTER'S NO. 1667

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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
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     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
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     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
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     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
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     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.











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