| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 1087, 1400 | PRINTER'S NO. 2260 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY SCARNATI AND M. WHITE, JUNE 4, 2009 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, OCTOBER 6, 2010 |
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| AN ACT |
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1 | Amending the act of July 10, 2008 (P.L.1109, No.78), entitled | <-- |
2 | "An act providing for the study and mandated content of |
3 | biofuels," further providing for definitions, for biodiesel | <-- |
4 | content in diesel fuel sold for on-road use and for agency | <-- |
5 | responsibilities; and imposing penalties. |
6 | Amending the act of July 10, 2008 (P.L.1009, No.78), entitled | <-- |
7 | "An act providing for the study and mandated content of |
8 | biofuels," further providing for definitions, for biodiesel |
9 | content in diesel fuel sold for on-road use and for |
10 | cellulosic ethanol content in gasoline; providing for |
11 | blending, registration and other requirements; further |
12 | providing for department authority and responsibility; |
13 | providing for fees; establishing the Biofuel Development |
14 | Account; and imposing penalties. |
15 | The General Assembly of the Commonwealth of Pennsylvania |
16 | hereby enacts as follows: |
17 | Section 1. Section 3(f) of the act of July 10, 2008 | <-- |
18 | (P.L.1109, No.78), known as the Biofuel Development and In-State |
19 | Production Incentive Act, is amended to read: |
20 | Section 3. Biodiesel content in diesel fuel sold for on-road |
21 | use. |
22 | Section 1. Section 2 of the act of July 10, 2008 (P.L.1109, | <-- |
23 | No.78), known as the Biofuel Development and In-State Production |
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1 | Incentive Act, is amended by adding definitions to read: |
2 | Section 2. Definitions. |
3 | The following words and phrases when used in this act shall |
4 | have the meanings given to them in this section unless the |
5 | context clearly indicates otherwise: |
6 | "American Society for Testing and Materials International" or |
7 | "ASTM." A private organization that utilizes committees of |
8 | industry representatives and regulators to develop product |
9 | quality standards and test methods to be used by industries, |
10 | regulatory agencies and purchasing agents. |
11 | "Annualized basis." The sum of three consecutive months of |
12 | in-State production multiplied by four. |
13 | "ASTM specification." A standard quality specification |
14 | developed and published by the American Society for Testing and |
15 | Materials International. Each specification includes references |
16 | to standard test methods, also developed and published by ASTM. |
17 | * * * |
18 | "Biodiesel blend." A blend of diesel fuel and biodiesel fuel |
19 | to be sold or offered for sale to ultimate consumers in this |
20 | Commonwealth for use in on-road compression ignition engines. |
21 | * * * |
22 | "Consumer." A person that purchases automotive fuel for |
23 | purposes other than resale. |
24 | * * * |
25 | "Diesel fuel." Petroleum diesel fuel that complies with ASTM |
26 | D975 or its successor standard. |
27 | "Distributor." A person that manufactures, refines, receives |
28 | for storage, distributes, sells or uses petroleum products, |
29 | including diesel fuel, biodiesel and biodiesel blend, in this |
30 | Commonwealth for subsequent distribution to another person other |
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1 | than the consumer. |
2 | "In-line injection blending." Blending biodiesel with diesel |
3 | fuel through the use of a dispensing device which includes |
4 | Department of Agriculture-approved and National Institute of |
5 | Standard and Technology-approved meters on both the biodiesel |
6 | and diesel fuel supply and the ability to detect, alarm and |
7 | discontinue loading biodiesel blends that fall outside the |
8 | desired blend ratio by more than 0.5%. |
9 | "Load rack terminals." A location where the commercial |
10 | transfer of petroleum products, including diesel fuel, biodiesel |
11 | and biodiesel blend, at the wholesale level is conducted |
12 | utilizing meters employed in the measurement of product |
13 | delivered to a seller by a buyer. |
14 | "Manufacture." To produce, mix, blend, repackage or further |
15 | process. |
16 | * * * |
17 | "Person." An individual, corporation, partnership, stock |
18 | company, society, association, business unit or agent or |
19 | employee thereof. |
20 | "Producer." A person that purchases component elements and |
21 | blends them to produce automotive fuel, including biodiesel |
22 | blend. |
23 | "Refinery" or "terminal." A petroleum refinery, pipeline |
24 | terminal, river terminal, load rack terminal, storage facility, |
25 | producer facility or other point of origin where petroleum |
26 | products, including diesel fuel, biodiesel and biodiesel blend, |
27 | are manufactured, blended or imported by rail, truck, barge or |
28 | pipe and held, stored, transferred, offered for distribution, |
29 | distributed, offered for sale or sold. |
30 | * * * |
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1 | "Retailer." A person that sells automotive fuel, including |
2 | diesel fuel, biodiesel and biodiesel blend, to the consumer. |
3 | "Sale," "sell," "offer for sale" or "sold." To offer for |
4 | sale, contract, barter, exchange, distribute or transfer title. |
5 | "Unclassified importer." A person that imports or causes to |
6 | be imported diesel fuel, biodiesel or biodiesel blend for use, |
7 | distribution or sale in this Commonwealth, but that does not |
8 | qualify as a distributor. |
9 | Section 2. Section 3(a) and (f) of the act are amended to |
10 | read: |
11 | Section 3. Biodiesel content in diesel fuel sold for on-road |
12 | use. |
13 | (a) Volume standards.--The following standards shall apply: |
14 | (1) All diesel fuel sold or offered for sale to ultimate |
15 | consumers in this Commonwealth for use in on-road compression |
16 | ignition engines must [contain] be blended with biodiesel so |
17 | as to achieve a biodiesel blend of at least 2% biodiesel by |
18 | volume one year after the in-State production volume of |
19 | 40,000,000 gallons of biodiesel has been reached and |
20 | sustained for three months on an annualized basis as |
21 | determined by the department. The biodiesel blend shall |
22 | comply with ASTM specification D975 or its successor |
23 | standard. |
24 | (2) All diesel fuel sold or offered for sale to ultimate |
25 | consumers in this Commonwealth for use in on-road compression |
26 | ignition engines must [contain] be blended with biodiesel so |
27 | as to achieve a biodiesel blend of at least 5% biodiesel by |
28 | volume one year after the in-State production volume of |
29 | 100,000,000 gallons of biodiesel has been reached and |
30 | sustained for three months on an annualized basis as |
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1 | determined by the department. The biodiesel blend shall |
2 | comply with ASTM specification D975 or its successor |
3 | standard. |
4 | (3) All diesel fuel sold or offered for sale to ultimate |
5 | consumers in this Commonwealth for use in on-road compression |
6 | ignition engines must [contain] be blended with biodiesel so |
7 | as to achieve a biodiesel blend of at least 10% biodiesel by |
8 | volume one year after the in-State production volume of |
9 | 200,000,000 gallons of biodiesel has been reached and |
10 | sustained for three months on an annualized basis as |
11 | determined by the department. The biodiesel blend shall |
12 | comply with ASTM specification D7467 or its successor |
13 | standard. |
14 | (4) All diesel fuel sold or offered for sale to ultimate |
15 | consumers in this Commonwealth for use in on-road compression |
16 | ignition engines must [contain] be blended with biodiesel so |
17 | as to achieve a biodiesel blend of at least 20% biodiesel by |
18 | volume one year after the in-State production volume of |
19 | 400,000,000 gallons of biodiesel has been reached and |
20 | sustained for three months on an annualized basis as |
21 | determined by the department. The biodiesel blend shall |
22 | comply with ASTM specification D7467 or its successor |
23 | standard. |
24 | * * * |
25 | (f) [Exception] Exceptions.--The requirements of this |
26 | section shall not apply to [aviation]: |
27 | (1) Aviation fuel, home heating fuel or where prohibited |
28 | by law. |
29 | (2) Diesel fuel produced from 100% Pennsylvania grade | <-- |
30 | crude oil by a small refiner, as defined by 40 CFR 80.1101(g) |
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1 | (relating to small refinery), through December 31, 2010. |
2 | Section 3. Section 5 of the act is amended by adding | <-- |
3 | subsections to read: |
4 | Section 5. Agency responsibilities. |
5 | * * * |
6 | (e) Enforcement.-- |
7 | (1) The department is charged with the general |
8 | enforcement of this act. The department may employ all proper |
9 | means for the enforcement of this act, including issuing |
10 | notices and orders, filing violations for criminal |
11 | prosecution, seeking injunctive relief, imposing civil |
12 | penalties and entering into consent agreements. |
13 | (2) Any person that transfers, offers for sale or sells |
14 | biodiesel or biodiesel blend in this Commonwealth for use in |
15 | on-road compression ignition engines shall register with the |
16 | department. If a person has multiple locations where the |
17 | person conducts such activities, each location shall be |
18 | separately registered, but may be submitted in a single |
19 | electronic form. This paragraph includes in-State and out-of- |
20 | State persons, such as refineries, terminals, distributors, |
21 | producers, retailers and unclassified importers, that |
22 | transfer, sell or offer for sale biodiesel and biodiesel |
23 | blend products for ultimate on-road use by consumers in this |
24 | Commonwealth. |
25 | (3) (i) Any time biodiesel blend is sold or transferred |
26 | from a refinery, terminal, shipper or any person, for |
27 | sale to ultimate consumers in this Commonwealth, either |
28 | directly or through a retailer or other person, a bill of |
29 | lading or shipping manifest shall be provided to the |
30 | person that receives the biodiesel blend. The shipping |
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1 | manifest or bill of lading shall accompany the biodiesel |
2 | blend to the retailer. For direct consumer sales of |
3 | biodiesel blend by a terminal or refinery, such bills of |
4 | lading or shipping manifest shall be retained at the |
5 | point of sale. A copy of such records shall be retained |
6 | by the refinery, terminal, distributor, producer, |
7 | unclassified importer or person responsible for a period |
8 | of one year from delivery of the biodiesel blend product |
9 | or for a longer period of time if part of an enforcement |
10 | action. |
11 | (ii) For biodiesel blend, the bill of lading or |
12 | shipping manifest shall contain and disclose the |
13 | following information: |
14 | (A) The Pennsylvania registration number, name |
15 | and location of the terminal, refinery, distributor, |
16 | producer, unclassified importer or person that |
17 | created the biodiesel blend. |
18 | (B) The biodiesel content, stating volume |
19 | percentage, based upon gallons of biodiesel per |
20 | gallons of diesel fuel base-stock, or an ASTM “Bxx” |
21 | designation where “xx” denotes the volume percentage |
22 | biodiesel included in the blended product. |
23 | (C) The ASTM specification of the biodiesel used |
24 | in the biodiesel blend. |
25 | (D) The grade and ASTM specification of the |
26 | diesel fuel. |
27 | (E) The ASTM specification of the biodiesel |
28 | blend. |
29 | (F) The total gallons of biodiesel blend sold, |
30 | shipped or transferred. |
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1 | (G) A certification signed by the refinery, |
2 | terminal, distributor, producer, unclassified |
3 | importer or other person, that created the biodiesel |
4 | blend stating the information contained in the bill |
5 | of lading or shipping manifest is true and correct |
6 | subject to the penalties of 18 Pa.C.S. § 4904 |
7 | (relating to unsworn falsification to authorities). |
8 | (iii) Retailers offering a biodiesel blend product |
9 | for ultimate sale to consumers in this Commonwealth for |
10 | use in on-road compression ignition engines shall assure |
11 | they receive and retain for their records a copy of the |
12 | bills of lading and shipping manifests required by |
13 | subparagraphs (i) and (ii). These records shall be |
14 | retained for a period of one year from receipt of the |
15 | biodiesel blend product or for a longer period of time if |
16 | part of an enforcement action either at the facility |
17 | where the product is sold or at the corporate |
18 | headquarters, so long as the bills of lading and shipping |
19 | manifests remain at the facility where the product is |
20 | sold until such time as that product is sold or is no |
21 | longer present at the facility. Notwithstanding the |
22 | provisions of this subsection, no retailer shall be found |
23 | in violation of this act for failure to make the records |
24 | required by subparagraphs (i) and (ii) immediately |
25 | available to the department upon inspection of the |
26 | facility where the product is sold, provided that the |
27 | records are submitted to the department within two |
28 | business days. |
29 | (iv) Any time biodiesel is sold or transferred from |
30 | any person to be sold or offered for sale to ultimate |
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1 | consumers in this Commonwealth for use in on-road |
2 | compression ignition engines as part of a biodiesel |
3 | blend, a certification shall be provided to the person |
4 | that receives the biodiesel. The certification shall |
5 | accompany the biodiesel to the person that blends the |
6 | biodiesel with diesel fuel and shall accompany the |
7 | biodiesel blend into which the biodiesel has been |
8 | incorporated to the retailer. The certification shall be |
9 | signed by the person selling or transferring the |
10 | biodiesel and state that the biodiesel is compliant with |
11 | the definition and quality standards for biodiesel under |
12 | this act, including ASTM D-6751-02, or its successor |
13 | standard, and be made subject to the penalties of 18 |
14 | Pa.C.S. § 4904. A copy of the certification shall be |
15 | retained by the person selling or transferring the |
16 | biodiesel, the person blending the biodiesel with diesel |
17 | fuel and by the retailer for a period of one year from |
18 | delivery of the biodiesel or biodiesel blend, as |
19 | applicable, or for a longer period of time if part of an |
20 | enforcement action. With regard to a retailer, a copy of |
21 | the certification may be retained at the corporate |
22 | headquarters so long as the certification remains at the |
23 | facility where the product is sold until such time as |
24 | that product is sold or is no longer present at the |
25 | facility. Notwithstanding the provisions of this |
26 | subsection, no retailer shall be found in violation of |
27 | this act for failure to make the records required by |
28 | subparagraphs (i) and (ii) immediately available to the |
29 | department upon inspection of the facility where the |
30 | product is sold, provided that the records are submitted |
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1 | to the department within two business days. |
2 | (4) The department shall have the following authority: |
3 | (i) To conduct unannounced random inspections of any |
4 | person or establishment located in this Commonwealth that |
5 | stores, holds, blends, sells or offers for sale diesel |
6 | fuel, biodiesel or biodiesel blend. Inspections shall |
7 | include the premises, tanks, storage facilities, |
8 | transportation and storage vehicles, dispensing devices |
9 | and any other place where diesel fuel, biodiesel or |
10 | biodiesel blend is stored, held, blended, sold or offered |
11 | for sale. |
12 | (ii) To take samples of and test the diesel fuel, |
13 | biodiesel and biodiesel blend being stored, held, |
14 | blended, sold or offered for sale. |
15 | (iii) To audit the books and records, including |
16 | copying, pertaining to the diesel fuel, biodiesel or |
17 | biodiesel blend being stored, held, sold or offered for |
18 | sale, and its component parts, including: |
19 | (A) Delivery invoices, bills of lading and |
20 | shipping manifests. |
21 | (B) Sales invoices, bills of lading and shipping |
22 | manifests. |
23 | (C) Inventory records. |
24 | (D) Contracts and agreements between suppliers, |
25 | buyers and sellers. |
26 | (5) The department is authorized to access, during |
27 | regular business hours, the premises, including the tanks, |
28 | storage facilities, transportation and storage vehicles, |
29 | dispensing devices and any other place where diesel fuel, |
30 | biodiesel or biodiesel blend is stored, held, blended, sold |
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1 | or offered for sale, and the records of any establishment, |
2 | located in this Commonwealth, where diesel fuel, biodiesel or |
3 | biodiesel blend is stored, held, processed, distributed, |
4 | offered or exposed for sale or sold in this Commonwealth for |
5 | the purpose of investigation and enforcement of this act, |
6 | including auditing records and taking samples of diesel fuel, |
7 | biodiesel or biodiesel blend from tanks, storage facilities, |
8 | transportation and storage vehicles, dispensing devices and |
9 | any other place where diesel fuel, biodiesel or biodiesel |
10 | blend is stored, held, blended, sold or offered for sale. A |
11 | person that willfully and intentionally interferes with an |
12 | employee of the department in the performance of duties or |
13 | activities authorized under this act commits a misdemeanor of |
14 | the third degree. |
15 | (6) The department shall have the authority to issue |
16 | stop-sale orders with respect to all biodiesel and biodiesel |
17 | blend stored, held, blended, sold or offered for sale to |
18 | ultimate consumers in this Commonwealth for use in on-road |
19 | compression ignition engines where the department determines, |
20 | after sampling and analysis, that the biodiesel or biodiesel |
21 | blend does not comply with the standards established by this |
22 | act or the regulations promulgated under this act and would |
23 | be detrimental to the operation of on-road compression |
24 | ignition engines if used for its intended use. The department |
25 | shall release the noncompliant biodiesel or biodiesel blend |
26 | for sale only when the department determines the biodiesel or |
27 | biodiesel blend is either brought into compliance with this |
28 | act or regulations promulgated under this act or it would no |
29 | longer be detrimental to the operation of on-road compression |
30 | ignition engines if used for its intended use. All such |
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1 | biodiesel or biodiesel blend must be properly labeled as to |
2 | its noncompliant characteristics if released and permitted to |
3 | be sold without being brought into compliance with this act |
4 | or regulations promulgated under this act. A person who |
5 | knowingly sells or offers for sale biodiesel or biodiesel |
6 | blend subject to a stop-sale order in this Commonwealth for |
7 | use by ultimate consumers in on-road compression ignition |
8 | engines commits a misdemeanor of the third degree. |
9 | (f) Penalties.-- |
10 | (1) (i) The department may assess a civil penalty of |
11 | not less than $100 nor more than $1,000 per day for each |
12 | knowing violation of this act or a regulation promulgated |
13 | under this act. |
14 | (ii) The department shall provide written notice of |
15 | the penalty amount as well as the general factual and |
16 | legal basis for the penalty and shall advise the affected |
17 | person that, within 15 days of receipt of the notice, the |
18 | person may file with the Secretary of Agriculture a |
19 | written request for an administrative hearing. Unless a |
20 | timely request has been filed, the written notice shall |
21 | become final. If a written request for a hearing is |
22 | timely filed, the hearing on the penalty assessment shall |
23 | be held in accordance with the provisions of 2 Pa.C.S. |
24 | Chs. 5 Subch. A (relating to practice and procedure of |
25 | Commonwealth agencies) and 7 Subch. A (relating to |
26 | judicial review of Commonwealth agency action). |
27 | (iii) In cases of inability to collect the civil |
28 | penalty or failure of any person to pay all or a portion |
29 | of the penalty, the department may refer the matter to |
30 | the Office of General Counsel or the Office of Attorney |
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1 | General, which shall institute an action in the |
2 | appropriate court to recover the penalty. |
3 | (2) A person who knowingly violates a provision of this |
4 | act or a rule or regulation adopted or order issued under |
5 | this act: |
6 | (i) Unless otherwise specified in this act, for the |
7 | first offense, commits a summary offense and shall, upon |
8 | conviction, be sentenced to pay a fine of not less than |
9 | $100 nor more than $500 plus costs of prosecution or to |
10 | imprisonment for not more than 90 days, or both. |
11 | (ii) For a subsequent offense at a registered |
12 | location that occurs within two years of sentencing for |
13 | the prior violation, commits a misdemeanor of the third |
14 | degree and shall, upon conviction, be sentenced to pay a |
15 | fine of not less than $500 nor more than $1,000 plus |
16 | costs of prosecution or to imprisonment of not more than |
17 | one year, or both. |
18 | (3) A person creating a biodiesel blend by means other |
19 | than in-line injection blending or another blending process |
20 | approved by the department as a substantial equivalent, |
21 | either through regulations promulgated under this act or upon |
22 | application to the department for approval pursuant to this |
23 | subsection, shall be found in violation of this act's |
24 | biodiesel percentage requirements for creating a biodiesel |
25 | blend that does not conform to this act's biodiesel |
26 | percentage requirements without proof of having knowingly |
27 | violated this act. |
28 | (4) In addition to any other remedies set forth under |
29 | this act, a violation of this act or a regulation promulgated |
30 | under this act shall be abatable in the manner provided by |
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1 | law or equity. In cases where the circumstances require it, a |
2 | mandatory preliminary injunction, special injunction or |
3 | temporary restraining order may be issued upon the terms |
4 | prescribed by the court, provided notice of the application |
5 | has been given to the respondent in accordance with the rules |
6 | of equity practice. In any proceeding, the court shall issue |
7 | a prohibitory or mandatory injunction if it finds that the |
8 | respondent is engaging in unlawful conduct as defined under |
9 | this act or is engaging in conduct which is causing immediate |
10 | and irreparable harm to the public. In addition to the |
11 | injunction, the court, in the equity proceeding, may assess |
12 | civil penalties in accordance with this section. |
13 | Section 2 4. This act shall take effect in 60 days. | <-- |
14 | Section 1. Section 2 of the act of July 10, 2008 (P.L.1009, | <-- |
15 | No.78), known as the Biofuel Development and In-State Production |
16 | Incentive Act, is amended by adding definitions to read: |
17 | Section 2. Definitions. |
18 | The following words and phrases when used in this act shall |
19 | have the meanings given to them in this section unless the |
20 | context clearly indicates otherwise: |
21 | "American Society for Testing and Materials International" or |
22 | "ASTM." A member-based international standards organization |
23 | that develops and publishes voluntary consensus technical |
24 | standards and test methods for a variety of materials and |
25 | products, including automotive fuel and other petroleum |
26 | products, or any successor organization. |
27 | "Annualized basis." The sum of three consecutive months of |
28 | in-State production multiplied by four. |
29 | "Approved biodiesel blending method." A method whereby |
30 | diesel fuel is blended with biodiesel under the following |
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1 | conditions: |
2 | (1) The method utilizes meters approved by the |
3 | Department of Agriculture to individually measure the volume |
4 | of each fuel. |
5 | (2) The method achieves and maintains a consistent blend |
6 | throughout the entire volume being blended. |
7 | (3) The method achieves and maintains the blend |
8 | percentage within a margin of one-half of one percent of the |
9 | total volume of biodiesel required to make the desired |
10 | blending percentage. |
11 | (4) The blending occurs at a facility capable of |
12 | maintaining the biodiesel at a minimum of ten degrees |
13 | Fahrenheit above the cloud point of the biodiesel. |
14 | "ASTM specification." A standard quality specification |
15 | developed and published by the American Society for Testing and |
16 | Materials International. |
17 | * * * |
18 | "Biodiesel blend." A blend of diesel fuel and biodiesel in a |
19 | percentage blend to be sold or offered for sale to consumers in |
20 | this Commonwealth for use in on-road compression ignition |
21 | engines. |
22 | * * * |
23 | "Consumer." A natural person who purchases fuel products for |
24 | purposes other than resale. |
25 | * * * |
26 | "Diesel fuel." Petroleum diesel fuel that complies with ASTM |
27 | D975 or its successor standard. |
28 | * * * |
29 | "Person." A natural person, corporation, partnership, |
30 | limited liability company, business trust, association, estate |
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1 | or foundation. |
2 | * * * |
3 | "Retailer." A person that sells, offers for sale or |
4 | otherwise transfers title to fuel products, including diesel |
5 | fuel, biodiesel and biodiesel blend, to a consumer. |
6 | Section 2. Sections 3(a) and (f) and 4(a) of the act are |
7 | amended to read: |
8 | Section 3. Biodiesel content in diesel fuel sold for on-road |
9 | use. |
10 | (a) Volume standards.--The following standards shall apply: |
11 | (1) All diesel fuel sold or offered for sale to |
12 | [ultimate] consumers in this Commonwealth for use in on-road |
13 | compression ignition engines must [contain] be blended with |
14 | biodiesel so as to achieve a biodiesel blend of at least 2% |
15 | biodiesel by volume one year after the in-State production |
16 | volume of 40,000,000 gallons of biodiesel has been reached |
17 | and sustained for three months on an annualized basis as |
18 | determined by the department. Biodiesel blend of less than 6% |
19 | biodiesel shall comply with ASTM specification D975 or its |
20 | successor standard. Biodiesel blend of 6% or more through 20% |
21 | biodiesel shall comply with ASTM specification D7467 or its |
22 | successor standard. Biodiesel blend of more than 20% |
23 | biodiesel shall comply with standards adopted by the |
24 | department through regulation until an ASTM standard is |
25 | applicable. |
26 | (2) All diesel fuel sold or offered for sale to |
27 | [ultimate] consumers in this Commonwealth for use in on-road |
28 | compression ignition engines must [contain] be blended with |
29 | biodiesel so as to achieve a biodiesel blend of at least 5% |
30 | biodiesel by volume one year after the in-State production |
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1 | volume of 100,000,000 gallons of biodiesel has been reached |
2 | and sustained for three months on an annualized basis as |
3 | determined by the department. Biodiesel blend of less than 6% |
4 | biodiesel shall comply with ASTM specification D975 or its |
5 | successor standard. Biodiesel blend of 6% or more through 20% |
6 | biodiesel shall comply with ASTM specification D7467 or its |
7 | successor standard. Biodiesel blend of more than 20% |
8 | biodiesel shall comply with standards adopted by the |
9 | department through regulation until an ASTM standard is |
10 | applicable. |
11 | (3) All diesel fuel sold or offered for sale to |
12 | [ultimate] consumers in this Commonwealth for use in on-road |
13 | compression ignition engines must [contain] be blended with |
14 | biodiesel so as to achieve a biodiesel blend of at least 10% |
15 | biodiesel by volume one year after the in-State production |
16 | volume of 200,000,000 gallons of biodiesel has been reached |
17 | and sustained for three months on an annualized basis as |
18 | determined by the department. Biodiesel blend of 10% or more |
19 | through 20% biodiesel shall comply with ASTM specification |
20 | D7467 or its successor standard. Biodiesel blend of more than |
21 | 20% biodiesel shall comply with standards adopted by the |
22 | department through regulation until an ASTM standard is |
23 | applicable. |
24 | (4) All diesel fuel sold or offered for sale to |
25 | [ultimate] consumers in this Commonwealth for use in on-road |
26 | compression ignition engines must [contain] be blended with |
27 | biodiesel so as to achieve a biodiesel blend of at least 20% |
28 | biodiesel by volume one year after the in-State production |
29 | volume of 400,000,000 gallons of biodiesel has been reached |
30 | and sustained for three months on an annualized basis as |
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1 | determined by the department. Biodiesel blend of 20% |
2 | biodiesel shall comply with ASTM specification D7467 or its |
3 | successor standard. Biodiesel blend of more than 20% |
4 | biodiesel shall comply with standards adopted by the |
5 | department through regulation until an ASTM standard is |
6 | applicable. |
7 | * * * |
8 | (f) [Exception] Exceptions.--The requirements of this |
9 | section shall not apply to [aviation]: |
10 | (1) Aviation fuel, home heating fuel or where prohibited |
11 | by law. |
12 | (2) Diesel fuel produced from 100% Pennsylvania grade |
13 | crude oil by a small refiner, as defined by 40 CFR 80.1101(g) |
14 | (relating to definitions). This paragraph shall expire |
15 | January 1, 2011. |
16 | (3) Fuel stored at a nuclear power plant. |
17 | (4) The blend percentage requirements of subsection (a) |
18 | (2), (3) and (4) shall not apply to diesel fuel produced from |
19 | 100% Pennsylvania grade crude oil by a small refiner, as |
20 | defined by 40 CFR 80.1101(g). |
21 | Section 4. Cellulosic ethanol content in gasoline. |
22 | (a) Cellulosic ethanol content required.--All gasoline sold |
23 | or offered for sale to [ultimate] consumers in this Commonwealth |
24 | must contain at least 10% cellulosic ethanol by volume as |
25 | determined by an appropriate Environmental Protection Agency or |
26 | American Society for Testing Materials standard method of |
27 | analysis one year after the in-State production volume of |
28 | 350,000,000 gallons of cellulosic ethanol has been reached and |
29 | sustained for three months on an annualized basis as determined |
30 | by the department. |
|
1 | * * * |
2 | Section 3. The act is amended by adding a section to read: |
3 | Section 4.1 . Blending, registration and other requirements. |
4 | (a) Blending requirements.--Biodiesel blend shall be created |
5 | using an approved biodiesel blending method. |
6 | (b) Registration requirements.--Any person that offers for |
7 | sale, sells or otherwise transfers title in this Commonwealth to |
8 | biodiesel blend or biodiesel for use by consumers in on-road |
9 | compression ignition engines shall register annually with the |
10 | department. Each location in this Commonwealth where the person |
11 | conducts the activity shall be separately registered, but may be |
12 | submitted in a single form. This subsection shall apply to in- |
13 | State and out-of-State persons. The application for registration |
14 | shall be on a form prescribed by the department and may be |
15 | accepted electronically by the department. |
16 | (c) Bill of lading.-- |
17 | (1) Each time biodiesel blend is sold, offered for sale |
18 | or title to which is otherwise transferred for ultimate sale |
19 | to consumers in this Commonwealth, a bill of lading or |
20 | shipping manifest meeting the requirements of paragraph (2) |
21 | shall be provided to the person that receives the biodiesel |
22 | blend. For sales of biodiesel blend made directly to |
23 | consumers by the person that created it, the bill of lading |
24 | or shipping manifest shall be retained at the point of sale |
25 | for a period of one year from delivery of the biodiesel blend |
26 | or for a longer period of time, if the bill of lading or |
27 | shipping manifest is part of an enforcement action initiated |
28 | during the one-year period. |
29 | (2) The bill of lading or shipping manifest required |
30 | under paragraph (1) shall: |
|
1 | (i) Include a certification by the person that |
2 | created the biodiesel blend stating that it was created |
3 | by an approved biodiesel blending method and that the |
4 | information contained in the bill of lading or shipping |
5 | manifest is true and correct. The certification shall be |
6 | subject to the penalties under 18 Pa.C.S. § 4904 |
7 | (relating to unsworn falsification to authorities). |
8 | (ii) Contain the following information: |
9 | (A) The name and location of the person that |
10 | created the biodiesel blend and, if the biodiesel |
11 | blend was created in this Commonwealth, the |
12 | registration number assigned by the department to the |
13 | subject location. |
14 | (B) The biodiesel content, stated as volume |
15 | percentage, based upon gallons of biodiesel per |
16 | gallons of diesel fuel base-stock, or an ASTM "Bxx" |
17 | designation where "xx" denotes the volume percentage |
18 | biodiesel included in the blended product. |
19 | (C) The ASTM specification of the biodiesel used |
20 | in the biodiesel blend. |
21 | (D) The grade and ASTM specification of the |
22 | diesel fuel. |
23 | (E) The ASTM specification of the biodiesel |
24 | blend. |
25 | (F) The total gallons of biodiesel blend sold, |
26 | offered for sale or title to which is otherwise being |
27 | transferred. |
28 | (3) A retailer selling, offering to sell or otherwise |
29 | transferring title to a biodiesel blend shall retain a copy |
30 | of the bill of lading or shipping manifest required under |
|
1 | paragraph (1) for a period of one year from receipt of the |
2 | biodiesel blend or for a longer period of time, if the bill |
3 | of lading or shipping manifest is part of an enforcement |
4 | action initiated during the one-year period. The bill of |
5 | lading or shipping manifest must remain at the facility where |
6 | the biodiesel blend has been offered for sale, sold or title |
7 | to which has otherwise been transferred at least until the |
8 | biodiesel blend physically leaves the facility, after which |
9 | it may be retained at the corporate headquarters of the |
10 | retailer. Failure by a retailer to make a copy of a bill of |
11 | lading or shipping manifest immediately available to the |
12 | department for inspection at the facility where the biodiesel |
13 | blend was offered for sale, sold or title to which was |
14 | otherwise transferred shall not be deemed a violation of this |
15 | act if the copy is submitted to the department within two |
16 | business days following the inspection. |
17 | (d) Certification.-- |
18 | (1) Any time biodiesel is sold, offered for sale or |
19 | title to which is otherwise transferred in this Commonwealth |
20 | for use in biodiesel blend, the person selling, offering for |
21 | sale or otherwise transferring title to the biodiesel shall |
22 | provide a certification stating that the biodiesel is |
23 | compliant with the definition and quality standards for |
24 | biodiesel under this act, including ASTM D-6751-02, or its |
25 | successor standard. The certification shall also contain the |
26 | name and location of the person that manufactured the |
27 | biodiesel and, if the biodiesel was manufactured in this |
28 | Commonwealth, the registration number assigned by the |
29 | department to the subject location and shall be subject to |
30 | the penalties of 18 Pa.C.S. § 4904. |
|
1 | (2) A copy of the certification required under paragraph |
2 | (1) shall be provided to any person that receives the |
3 | biodiesel, the person that blends the biodiesel with the |
4 | diesel fuel to create the biodiesel blend and to any person |
5 | that receives the biodiesel blend. The person providing the |
6 | certification and each person that receives a copy of the |
7 | certification shall retain a copy of the certification for a |
8 | period of one year from the delivery of the biodiesel or |
9 | biodiesel blend, as applicable, or for a longer period of |
10 | time, if the bill of lading or shipping manifest is part of |
11 | an enforcement action initiated during the one-year period. |
12 | With respect to a retailer that receives the biodiesel blend, |
13 | a copy of the certification must remain at a facility where |
14 | the biodiesel blend made with the biodiesel is offered for |
15 | sale, sold or title to which is otherwise transferred at |
16 | least until it physically leaves the facility, after which it |
17 | may be retained at the corporate headquarters of the |
18 | retailer. Failure by a retailer to make a copy of the |
19 | certification immediately available to the department for |
20 | inspection at a facility where biodiesel blend made with the |
21 | biodiesel is offered for sale, sold or title to which is |
22 | otherwise transferred shall not be deemed a violation of this |
23 | act if the copy is submitted to the department within two |
24 | business days following the inspection. |
25 | Section 4. Section 5 heading and (a) of the act are amended |
26 | and the section is amended by adding subsections to read: |
27 | Section 5. [Agency responsibilities] Department authority and |
28 | responsibility. |
29 | (a) [Compliance] Enforcement.--With the exception of section |
30 | 3(d), the department shall [ensure compliance with] enforce this |
|
1 | act and[, in consultation with the Department of Transportation |
2 | and the Department of Environmental Protection,] shall |
3 | promulgate regulations as necessary to implement and enforce the |
4 | requirements of this act. The department may employ all proper |
5 | means for the enforcement of this act, including issuing notices |
6 | and orders, initiating criminal prosecutions, seeking injunctive |
7 | relief, imposing civil penalties and entering into consent |
8 | agreements. |
9 | * * * |
10 | (e) Authority.-- |
11 | (1) The department shall have the following authority: |
12 | (i) To access during regular business hours and to |
13 | conduct unannounced random inspections of any facility |
14 | located in this Commonwealth that stores, holds, blends, |
15 | sells, offers for sale or otherwise transfers title to |
16 | diesel fuel, biodiesel or biodiesel blend. Inspections |
17 | shall include the premises of the facility, tanks, |
18 | storage facilities, transportation and storage vehicles, |
19 | dispensing devices and any other place where diesel fuel, |
20 | biodiesel or biodiesel blend is stored, held, blended, |
21 | sold, offered for sale, or title to which is otherwise |
22 | transferred. |
23 | (ii) To take samples of and test the diesel fuel, |
24 | biodiesel and biodiesel blend being stored, held, |
25 | blended, sold, offered for sale or title to which is |
26 | otherwise being transferred. |
27 | (iii) To audit and copy the books and records |
28 | pertaining to the diesel fuel, biodiesel or biodiesel |
29 | blend being stored, held, sold, offered for sale or title |
30 | to which is otherwise being transferred, and its |
|
1 | component parts, including: |
2 | (A) Delivery invoices, sales invoices, bills of |
3 | lading and shipping manifests. |
4 | (B) Inventory records. |
5 | (C) Relevant contracts and agreements. |
6 | (iv) To issue stop-sale orders with respect to all |
7 | biodiesel blend and biodiesel stored, held, blended, sold |
8 | or title to which is otherwise transferred or offered for |
9 | sale to consumers in this Commonwealth for use in on-road |
10 | compression ignition engines if the department |
11 | determines, after sampling and analysis, that the |
12 | biodiesel blend or biodiesel does not comply with the |
13 | standards established under this act or the regulations |
14 | promulgated under this act and would be detrimental to |
15 | the operation of on-road compression ignition engines if |
16 | used for its intended use. The department may release the |
17 | noncompliant biodiesel blend or biodiesel for sale only |
18 | when the department determines the biodiesel blend or |
19 | biodiesel is either brought into compliance with this act |
20 | or regulations promulgated under this act or it would no |
21 | longer be detrimental to the operation of on-road |
22 | compression ignition engines if used for its intended |
23 | use. All such biodiesel blend or biodiesel must be |
24 | properly labeled as to its noncompliant characteristics |
25 | if released and permitted to be sold without being |
26 | brought into compliance with this act or regulations |
27 | promulgated under this act. A person that knowingly |
28 | sells, offers for sale or otherwise transfers title to |
29 | biodiesel blend or biodiesel in this Commonwealth subject |
30 | to a stop-sale order for use by consumers in on-road |
|
1 | compression ignition engines commits a misdemeanor of the |
2 | third degree. |
3 | (2) A person that willfully and intentionally interferes |
4 | with an employee of the department in the performance of the |
5 | duties conferred upon the department under the provisions of |
6 | this act commits a misdemeanor of the third degree. |
7 | (f) Penalties.-- |
8 | (1) (i) The department may assess a civil penalty of |
9 | not less than $100 nor more than $1,000 per day for each |
10 | knowing violation of this act or a regulation promulgated |
11 | under this act. |
12 | (ii) If a person fails to pay all or a portion of a |
13 | penalty assessed against the person, the department may |
14 | refer the matter to the Office of General Counsel or the |
15 | Office of Attorney General, which shall institute an |
16 | action in the appropriate court to recover the penalty. |
17 | (2) A person that knowingly violates a provision of this |
18 | act or a rule or regulation adopted or order issued under |
19 | this act: |
20 | (i) Unless otherwise specified in this act, for the |
21 | first offense, commits a summary offense and shall, upon |
22 | conviction, be sentenced to pay a fine of not less than |
23 | $100 nor more than $500 plus costs of prosecution or to |
24 | imprisonment for not more than 90 days, or both. |
25 | (ii) For a subsequent offense at one location that |
26 | occurs within two years of sentencing for the prior |
27 | violation at the same location, commits a misdemeanor of |
28 | the third degree and shall, upon conviction, be sentenced |
29 | to pay a fine of not less than $500 nor more than $1,000 |
30 | plus costs of prosecution or to imprisonment of not more |
|
1 | than one year, or both. |
2 | (3) In addition to any other remedies under this act, a |
3 | violation of this act or a regulation promulgated under this |
4 | act shall be abatable in any manner provided by law or |
5 | equity. In addition to any remedy ordered in an equity |
6 | proceeding, the court may assess civil penalties in |
7 | accordance with this act. |
8 | (g) Fees.-- |
9 | (1) The department may impose and collect the following |
10 | annual fees for the registration required under section |
11 | 4.1(b): |
12 | (i) Five thousand dollars for a location in this |
13 | Commonwealth where biodiesel is manufactured. |
14 | (ii) Five thousand dollars for a location in this |
15 | Commonwealth where biodiesel blend is created. |
16 | (iii) One hundred dollars for a person, other than a |
17 | person that operates a location described in subparagraph |
18 | (i) or (ii), that sells, offers for sale or otherwise |
19 | transfers title to biodiesel or biodiesel blend in this |
20 | Commonwealth, whether or not the person operates a |
21 | location in this Commonwealth where such activities are |
22 | conducted. |
23 | (iv) One hundred dollars for each location in excess |
24 | of one in this Commonwealth operated by the person |
25 | described in subparagraph (iii) where the person sells, |
26 | offers for sale or otherwise transfers title to biodiesel |
27 | or biodiesel blend. |
28 | (2) There is established a restricted account within the |
29 | State Treasury to be known as the Biofuel Development |
30 | Account. All money in the account is hereby appropriated on a |
|
1 | continuing basis to the department for the enforcement and |
2 | administration of this act. |
3 | (3) The following shall be deposited in the Biofuel |
4 | Development Account: |
5 | (i) Federal and State funds appropriated to the |
6 | department for implementation and administration of this |
7 | act. |
8 | (ii) Notwithstanding the provisions of 42 Pa.C.S. §§ |
9 | 3733 (relating to deposits into account) and 3733.1 |
10 | (relating to surcharge), all fees, fines, judgments and |
11 | penalties, including administrative, civil and criminal |
12 | penalties, and interest on the foregoing collected by the |
13 | department under this act. |
14 | (iii) Interest and any other earnings on money in |
15 | the account. |
16 | (iv) Funds from any other source, including gifts |
17 | and other contributions from public and private sources. |
18 | Section 5. This act shall take effect in 30 days. |
|