PRIOR PRINTER'S NO. 1667 PRINTER'S NO. 1982
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, YUDICHAK, McCALL, LENTZ, R. TAYLOR, GRUCELA AND SEIP, MAY 24, 2007
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 19, 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.
1 (3) Promote energy independence. 2 (4) Stimulate this Commonwealth's economy by increasing 3 demand for homegrown alternative fuel, creating production 4 facility construction jobs and creating long-term 5 manufacturing jobs. 6 (5) Provide alternative fuel sources that can be used to 7 protect consumers in this Commonwealth, both individuals and 8 businesses, from the volatile and ever-increasing costs of 9 traditional fuel sources. 10 Section 3. Definitions. 11 The following words and phrases when used in this act shall 12 have the meanings given to them in this section unless the 13 context clearly indicates otherwise: 14 "Biodiesel." A renewable, biodegradable, mono alkyl ester 15 combustible liquid fuel that meets American Society for Testing 16 and Materials Specification D6751 or its successor standard, 17 Standard Specification for Biodiesel Fuel Blend Stock (B100) for 18 Middle Distillate Fuels. 19 "Department." The Department of Environmental Protection of 20 the Commonwealth. 21 "Ethanol." An ethyl alcohol that has a purity of at least 22 99%, exclusive of added denaturants, that adheres to all of the 23 following standards: 24 (1) It has been denatured in conformity with a method 25 approved by the Bureau of Alcohol, Tobacco, Firearms and 26 Explosives of the United States Department of Justice, as 27 specified in 27 CFR Pts. 20 (relating to distribution and use 28 of denatured alcohol and rum) and 21 (relating to formulas 29 for denatured alcohol and rum). 30 (2) It meets all of the requirements of American Society 20070H1202B1982 - 2 -
1 for Testing and Materials Specification D4806 or its 2 successor standard, Standard Specification for Denatured Fuel 3 Ethanol for Blending with Gasolines for Use as Automotive 4 Spark-Ignition Engine Fuel. 5 "E85." A petroleum product that is a blend of agriculturally <-- 6 derived denatured ethanol and gasoline or natural gasoline that 7 typically contains 85% ethanol by volume. E85 produced for use 8 as a motor fuel shall comply with American Society for Testing 9 and Materials Specification D5798 or its successor standard. 10 Section 4. Biodiesel content in diesel fuel sold for on-road <-- 11 use IN THIS COMMONWEALTH. <-- 12 (a) Volume standards.--The following standards shall apply: 13 (1) All diesel fuel sold or offered for sale in this 14 Commonwealth for use in on-road compression ignition engines <-- 15 must contain at least 2% biodiesel by volume, one year after 16 in-State production volume of 30 million gallons of biodiesel 17 has been reached and sustained for three months on an 18 annualized basis. 19 (2) All diesel fuel sold or offered for sale in this 20 Commonwealth for use in on-road compression ignition engines <-- 21 must contain at least 5% biodiesel by volume, one year after 22 in-State production volume of 75 million gallons of biodiesel 23 has been reached and sustained for three months on an 24 annualized basis. 25 (3) All diesel fuel sold or offered for sale in this 26 Commonwealth for use in on-road compression ignition engines <-- 27 must contain at least 10% biodiesel by volume, one year after 28 in-State production volume of 150 million gallons of 29 biodiesel has been reached and sustained for three months on 30 an annualized basis, provided vehicle manufacturers recognize 20070H1202B1982 - 3 -
1 engine warranties associated with the use of biodiesel blends 2 10% or greater. 3 (4) All diesel fuel sold or offered for sale in this 4 Commonwealth for use in on-road compression ignition engines <-- 5 must contain at least 20% biodiesel by volume, one year after 6 in-State production volume of 300 million gallons of 7 biodiesel has been reached and sustained for three months on 8 an annualized basis, provided vehicle manufacturers recognize 9 engine warranties associated with the use of biodiesel blends 10 20% or greater. 11 (B) EXCEPTION.--THE REQUIREMENTS OF SUBSECTION (A) SHALL NOT <-- 12 APPLY TO AVIATION FUEL OR WHERE PROHIBITED BY LAW. 13 (b) (C) Coal-to-liquids substitution.--Nonsulfur diesel fuel <-- 14 derived from coal can be used in place of biodiesel to meet the 15 requirements of this section provided the fuel's carbon 16 emissions are fully offset, either through carbon sequestration 17 or by participating in carbon offset programs as provided by 18 section 6(b)(1). 19 Section 5. Ethanol content in gasoline sold for on-road use IN <-- 20 THIS COMMONWEALTH. 21 (a) Ethanol content required.--All gasoline sold or offered 22 for sale in this Commonwealth for use in on-road internal <-- 23 combustion engines, EXCEPT GASOLINE SOLD FOR USE AS AVIATION <-- 24 FUEL OR AS PROHIBITED BY LAW, must contain at least 10% ethanol 25 by volume AS DETERMINED BY AN APPROPRIATE UNITED STATES <-- 26 ENVIRONMENTAL PROTECTION AGENCY OR AMERICAN SOCIETY FOR TESTING 27 AND MATERIALS STANDARD METHOD OF ANALYSIS within one year after 28 the following conditions have been met: 29 (1) An in-State production volume of 200 million gallons 30 of ethanol has been reached and sustained for three months on 20070H1202B1982 - 4 -
1 an annualized basis. 2 (2) The department and the Department of Transportation 3 have made a determination, after a public hearing process, 4 that infrastructure sufficient to accommodate the 5 distribution and sale of gasoline containing 10% ethanol by 6 volume is in place Statewide. In making this determination 7 the department and the Department of Transportation shall 8 assess rail capability Statewide, including terminal 9 facilities capable of handling volumes of ethanol sufficient 10 to meet the requirements of this act. 11 (b) Reporting required.--If the department and the 12 Department of Transportation determine that the necessary 13 infrastructure is not in place Statewide under subsection 14 (a)(2), the agencies shall, within 60 days following the 15 determination and annually thereafter, if necessary, report to 16 the Governor and the General Assembly as follows: 17 (1) Identify areas where necessary infrastructure is not 18 in place. 19 (2) Describe actions planned or being taken to install 20 the necessary infrastructure. 21 (3) Identify any impediments to the installation of the 22 necessary infrastructure. 23 (4) Make recommendations for the installation of the 24 necessary infrastructure. 25 (c) Gasoline ethanol blend standard.--A gasoline/ethanol <-- 26 blend will be construed to be in compliance with this section if 27 the ethanol content, exclusive of denaturants and permitted 28 contaminants, is not less than 9.2% by volume and not more than 29 10% by volume of the blend as determined by an appropriate 30 United States Environmental Protection Agency or American 20070H1202B1982 - 5 -
1 Society for Testing and Materials standard method of analysis of 2 alcohol/ether content in motor fuels. 3 (d) (C) Construction.--Nothing in this section shall <-- 4 prohibit the sale of E85 or gasoline with concentrations of 5 ethanol greater than 10%. 6 Section 6. Agency responsibilities. 7 (a) Department of Agriculture.--With the exception of 8 section 4(b) (4)(C), the Department of Agriculture shall ensure <-- 9 compliance with this act and, in consultation with the 10 department and the Department of Transportation, promulgate 11 regulations as necessary to enforce the requirements of this 12 act. 13 (b) Department.-- 14 (1) The department shall promulgate and ensure 15 compliance with regulations for achieving the carbon offset 16 requirements of section 4(b) (4)(C). <-- 17 (2) The department shall conduct a study to evaluate the 18 effects this act has on the ability of this Commonwealth to 19 attain and maintain the National Ambient Air Quality 20 Standards. 21 Section 7. Effective date. 22 This act shall take effect immediately. E23L27BIL/20070H1202B1982 - 6 -