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                                                       PRINTER'S NO. 951

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 789 Session of 2007


        INTRODUCED BY DINNIMAN, COSTA, FERLO, FONTANA, LAVALLE, MELLOW,
           MUSTO, O'PAKE, RHOADES, STACK, STOUT, WASHINGTON AND WAUGH,
           MAY 2, 2007

        REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 2, 2007

                                     AN ACT

     1  Providing for the sale of alternative transportation fuels
     2     containing 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 PennSecurity
     7  Fuels Initiative Act.
     8  Section 2.  Purpose.
     9     It is the purpose of this act to do the following:
    10         (1)  Establish mandates for renewable content in on-road
    11     transportation fuels sold at retail in this Commonwealth in
    12     order to diversify our energy resources, thereby reducing our
    13     reliance on imported energy.
    14         (2)  Promote economic development in this Commonwealth by
    15     requiring in-State production of renewable fuels before the
    16     mandates shall take effect.
    17  Section 3.  Definitions.


     1     The following words and phrases when used in this act shall
     2  have the meanings given to them in this section unless the
     3  context clearly indicates otherwise:
     4     "Biodiesel."  A renewable, biodegradable, mono alkyl ester
     5  combustible liquid fuel that meets American Society For Testing
     6  and Materials Specification D-6751-02 or its successor standard,
     7  for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.
     8     "Ethanol."  An ethyl alcohol that has a purity of at least
     9  99%, exclusive of added denaturants, that adheres to all of the
    10  following standards:
    11         (1)  It has been denatured in conformity with a method
    12     approved by the Bureau of Alcohol, Tobacco, Firearms and
    13     Explosives of the United States Department of Justice, as
    14     specified in 27 CFR Pts. 20 (relating to distribution and use
    15     of denatured alcohol and rum) and 21 (relating to formulas
    16     for denatured alcohol and rum).
    17         (2)  It meets all the requirements of American Society of
    18     Testing and Materials D4806 or its successor standard,
    19     Standard Specification for Denatured Fuel Ethanol for
    20     Blending with Gasolines for Use as Automotive Spark-Ignition
    21     Engine Fuel.
    22     "E85."  A petroleum product that is a blend of agriculturally
    23  derived denatured ethanol and gasoline or natural gasoline that
    24  typically contains 85% ethanol by volume. E85 produced for use
    25  as a motor fuel shall comply with American Society of Testing
    26  and Materials Specification D 5798-96 or its successor standard.
    27  Section 4.  Biodiesel content in diesel fuel sold for on-road
    28                 use.
    29     (a)  Volume standards.--The following standards shall apply:
    30         (1)  All diesel fuel sold or offered for sale in this
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     1     Commonwealth for use in on-road compression ignition engines
     2     must contain at least 2% biodiesel by volume, one year after
     3     in-State production volume of 30 million gallons of biodiesel
     4     has been reached and sustained for three months on an
     5     annualized basis.
     6         (2)  All diesel fuel sold or offered for sale in this
     7     Commonwealth for use in on-road compression ignition engines
     8     must contain at least 5% biodiesel by volume, one year after
     9     in-State production volume of 75 million gallons of biodiesel
    10     has been reached and sustained for three months on an
    11     annualized basis.
    12         (3)  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 10% biodiesel by volume, one year after
    15     in-State production volume of 150 million gallons of
    16     biodiesel has been reached and sustained for three months on
    17     an annualized basis, provided vehicle manufacturers recognize
    18     engine warranties associated with the use of biodiesel blends
    19     10% or greater.
    20         (4)  All diesel fuel sold or offered for sale in this
    21     Commonwealth for use in on-road compression ignition engines
    22     must contain at least 20% biodiesel by volume, one year after
    23     in-State production volume of 300 million gallons of
    24     biodiesel has been reached and sustained for three months on
    25     an annualized basis, provided vehicle manufacturers recognize
    26     engine warranties associated with the use of biodiesel blends
    27     20% or greater.
    28     (b)  Coal-to-liquids substitution.--Nonsulfur diesel fuel
    29  derived from coal can be used in place of biodiesel to meet the
    30  requirements of this section provided the fuel's carbon
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     1  emissions are fully offset, either through carbon sequestration
     2  or by participating in carbon offset programs.
     3  Section 5.  Ethanol content in gasoline sold for on-road use.
     4     All gasoline sold or offered for sale in this Commonwealth
     5  for use in on-road internal combustion engines must contain at
     6  least 10% ethanol by volume, provided the following conditions
     7  have been met:
     8         (1)  An in-State production volume of 200 million gallons
     9     of ethanol is reached and sustained for three months on an
    10     annualized basis.
    11         (2)  The Department of Environmental Protection and the
    12     Department of Transportation shall make a determination,
    13     after a public hearing process, that infrastructure
    14     sufficient to accommodate the distribution and sale of
    15     gasoline containing 10% ethanol by volume is in place
    16     Statewide. In making this determination the Department of
    17     Environmental Protection and the Department of Transportation
    18     would assess rail capability Statewide, including terminal
    19     facilities capable of handling volumes of ethanol sufficient
    20     to meet the requirements of this act.
    21         (3)  The requirement shall take effect one year after the
    22     conditions in paragraphs (1) and (2) are met.
    23         (4)  A gasoline/ethanol blend will be construed to be in
    24     compliance with this section if the ethanol content,
    25     exclusive of denaturants and permitted contaminants, is not
    26     less than 9.2% by volume and not more than 10% by volume of
    27     the blend as determined by an appropriate United States
    28     Environmental Protection Agency or American Society of
    29     Testing Materials standard method of analysis of
    30     alcohol/ether content in motor fuels.
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     1  Nothing in this section shall prohibit the sale of E85 or
     2  gasoline with concentrations of ethanol greater than 10%.
     3  Section 6.  Agency responsibilities.
     4     (a)  Department of Agriculture.--With the exception of
     5  section 4(b), the Department of Agriculture shall ensure
     6  compliance with this act and, in consultation with the
     7  Department of Environmental Protection and the Department of
     8  Transportation, promulgate regulations as necessary to enforce
     9  the requirements of this act.
    10     (b)  Department of Environmental Protection.--
    11         (1)  The Department of Environmental Protection shall
    12     promulgate and ensure compliance with regulations for
    13     achieving the carbon offset requirements of section 4(b).
    14         (2)  The Department of Environmental Protection shall
    15     conduct a study to evaluate the effects this act has on the
    16     ability of this Commonwealth to attain and maintain the
    17     National Ambient Air Quality Standards.
    18  Section 7.  Effective date.
    19     This act shall take effect immediately.








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