Regular Session 2017-2018 House Bill 1306 P.N. 1613

PRINTER'S NO. 1613

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1306

Session of

2017

INTRODUCED BY HARKINS, McNEILL, CONKLIN, D. COSTA AND PASHINSKI,

MAY 1, 2017

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

MAY 1, 2017

AN ACT

Amending the act of July 10, 2008 (P.L.1009, No.78), entitled

"An act providing for the study and mandated content of

biofuels," further providing for definitions; providing for

biodiesel content in heating oil fuel sold; and further

providing for blending, registration and other requirements,

for department authority and responsibility and for

infrastructure reports.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "approved biodiesel blending

method" and "biodiesel blend" in section 2 of the act of July

10, 2008 (P.L.1009, No.78), known as the Biofuel Development and

In-State Production Incentive Act, are amended to read:

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Approved biodiesel blending method." A method whereby

diesel fuel or heating oil is blended with biodiesel under the

following conditions:

(1) The method utilizes meters approved by the

Department of Agriculture to individually measure the volume

of each fuel.

(2) The method achieves and maintains a consistent blend

throughout the entire volume being blended.

(3) The method achieves and maintains the blend

percentage within a margin of ten percent of the total volume

of biodiesel required to make the desired blending

percentage.

(4) The blending occurs at a facility capable of

maintaining the biodiesel at a minimum of ten degrees

Fahrenheit above the cloud point of the biodiesel.

* * *

"Biodiesel blend." As follows:

(1) A blend of diesel fuel and biodiesel in a percentage

blend to be sold or offered for sale to ultimate consumers in

this Commonwealth for use in on-road compression ignition

engines.

(2) A blend of heating oil and biodiesel in a percentage

blend to be sold or offered for sale to ultimate consumers in

this Commonwealth for heating.

* * *

Section 2. The act is amended by adding a section to read:

Section 3.1. Biodiesel content in heating oil fuel sold.

(a) Volume standards.--The following standards shall apply:

(1) All heating oil sold or offered for sale to ultimate

consumers in this Commonwealth must be blended with biodiesel

so as to achieve a biodiesel blend of at least 2% biodiesel

by volume one year after the in-State production volume of

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40,000,000 gallons of biodiesel has been reached and

sustained for three months on an annualized basis as

determined by the department. Biodiesel blend of less than 6%

biodiesel shall comply with ASTM specification D975 or its

successor standard. Biodiesel blend of 6% or more through 20%

biodiesel shall comply with ASTM specification D7467 or its

successor standard. Biodiesel blend of more than 20%

biodiesel shall comply with standards adopted by the

department through regulation until an ASTM standard is

applicable.

(2) All heating oil sold or offered for sale to ultimate

consumers in this Commonwealth must be blended with biodiesel

so as to achieve a biodiesel blend of at least 5% biodiesel

by volume one year after the in-State production volume of

100,000,000 gallons of biodiesel has been reached and

sustained for three months on an annualized basis as

determined by the department. Biodiesel blend of less than 6%

biodiesel shall comply with ASTM specification D975 or its

successor standard. Biodiesel blend of 6% or more through 20%

biodiesel shall comply with ASTM specification D7467 or its

successor standard. Biodiesel blend of more than 20%

biodiesel shall comply with standards adopted by the

department through regulation until an ASTM standard is

applicable.

(3) All heating oil sold or offered for sale to ultimate

consumers in this Commonwealth must be blended with biodiesel

so as to achieve a biodiesel blend of at least 10% biodiesel

by volume one year after the in-State production volume of

200,000,000 gallons of biodiesel has been reached and

sustained for three months on an annualized basis as

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determined by the department. Biodiesel blend of 10% or more

through 20% biodiesel shall comply with ASTM specification

D7467 or its successor standard. Biodiesel blend of more than

20% biodiesel shall comply with standards adopted by the

department through regulation until an ASTM standard is

applicable.

(4) All heating oil sold or offered for sale to ultimate

consumers in this Commonwealth must be blended with biodiesel

so as to achieve a biodiesel blend of at least 20% biodiesel

by volume one year after the in-State production volume of

400,000,000 gallons of biodiesel has been reached and

sustained for three months on an annualized basis as

determined by the department. Biodiesel blend of 20%

biodiesel shall comply with ASTM specification D7467 or its

successor standard. Biodiesel blend of more than 20%

biodiesel shall comply with standards adopted by the

department through regulation until an ASTM standard is

applicable.

(b) Applicability of standards.--The volume standards

mandated in subsection (a)(3) and (4) shall be effective only if

the department, in cooperation with the Department of

Transportation and the Department of Environmental Protection,

makes a determination that manufacturers of heating oil furnaces

that are sold in this Commonwealth have indicated publicly that

they will not void or withdraw furnace warranties due to the use

of biodiesel blends at the percentages contained in the

corresponding paragraph under subsection (a). This determination

shall be published in the Pennsylvania Bulletin and transmitted

to the Majority Leader and the Minority Leader of the Senate and

the Majority Leader and the Minority Leader of the House of

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Representatives.

apply to:

(1) Aviation fuel or where prohibited by law.

(2) Fuel stored at a nuclear power plant.

Section 3. Sections 4.1(a), (b), (c)(2)(ii) and (d)(2), 5(d)

and (e)(1) and 6(d) of the act are amended to read:

Section 4.1. Blending, registration and other requirements.

(a) Blending requirements.--The following requirements shall

apply:

(1) Biodiesel blend shall be created using an approved

biodiesel blending method.

(2) Biodiesel blend created in this Commonwealth for

transfer, offer for sale or sale in this Commonwealth shall

be created using an approved biodiesel blending method at

such time when and place where the diesel fuel or heating oil

is loaded out of the petroleum load rack terminal.

(3) Biodiesel blend created outside of and imported into

this Commonwealth shall not be transferred, offered for sale

or sold in this Commonwealth unless it has been created using

an approved biodiesel blending method.

(4) Diesel fuel and heating oil imported into this

Commonwealth shall be blended with biodiesel to create

biodiesel blend by an approved biodiesel blending method

before the diesel fuel or heating oil may be sold or offered

for sale or use within this Commonwealth.

(b) Registration requirements.--Any person that offers for

sale, sells or otherwise transfers title in this Commonwealth to

biodiesel blend or biodiesel for use by consumers in on-road

compression ignition engines or for heating shall register

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annually with the department. Each location in this Commonwealth

where the person conducts the activity shall be separately

registered, but may be submitted in a single form. This

subsection shall apply to in-State and out-of-State persons. The

application for registration shall be on a form prescribed by

the department and may be accepted electronically by the

department.

* * *

(2) The bill of lading or shipping manifest required

under paragraph (1) shall:

* * *

(ii) Contain the following information:

(A) The name and location of the person that

created the biodiesel blend and, if the biodiesel

blend was created in this Commonwealth, the

registration number assigned by the department to the

subject location.

(B) The biodiesel content, stated as volume

percentage, based upon an ASTM "Bxx" designation

where "xx" denotes the volume percentage biodiesel

included in the blended product.

in the biodiesel blend.

(D) The grade of the diesel fuel and ASTM

specification of the diesel fuel or heating oil.

(E) The ASTM specification of the biodiesel

blend.

(F) The total gallons of biodiesel blend sold,

offered for sale or title to which is otherwise being

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transferred.

* * *

(d) Certification.--

* * *

(2) A copy of the certification required under paragraph

(1) shall be provided to any person that receives the

biodiesel and the person that blends the biodiesel with the

diesel fuel or heating oil to create the biodiesel blend. The

person providing the certification and each person that

receives a copy of the certification shall retain a copy of

the certification for a period of one year from the delivery

of the biodiesel or for a longer period of time, if part of

an enforcement action initiated during the one-year period.

Section 5. Department authority and responsibility.

* * *

(d) Reduction.--The department, in consultation with the

Department of Environmental Protection, may suspend or modify to

reduce the mandated contents required by section 3, 3.1 or 4 if

the department determines that doing so is warranted by factors,

including, but not limited to, substantially increased costs to

consumers or insufficient quantity or distribution of biodiesel

or cellulosic ethanol.

(e) Authority.--

(1) The department shall have the following authority:

(i) To access during regular business hours and to

conduct unannounced random inspections of any facility

located in this Commonwealth that stores, holds, blends,

sells, offers for sale or otherwise transfers title to

diesel fuel, heating oil, biodiesel or biodiesel blend.

Inspections shall include the premises of the facility,

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tanks, storage facilities, transportation and storage

vehicles, dispensing devices and any other place where

diesel fuel, heating oil, biodiesel or biodiesel blend is

stored, held, blended, sold, offered for sale or title to

which is otherwise transferred.

(ii) To take samples of and test the diesel fuel,

heating oil, biodiesel and biodiesel blend being stored,

held, blended, sold, offered for sale or title to which

is otherwise being transferred.

(iii) To audit and copy the books and records

pertaining to the diesel fuel, heating oil, biodiesel or

biodiesel blend being stored, held, sold, offered for

sale or title to which is otherwise being transferred,

and its component parts, including:

(A) Delivery invoices, sales invoices, bills of

lading and shipping manifests.

(B) Inventory records.

(iv) To issue stop-sale orders with respect to all

biodiesel blend and biodiesel stored, held, blended, sold

or title to which is otherwise transferred or offered for

sale to consumers in this Commonwealth for use in on-road

compression ignition engines or for heating if the

department determines, after sampling and analysis, that

the biodiesel blend or biodiesel does not comply with the

standards established under this act or the regulations

promulgated under this act and would be detrimental to

the operation of on-road compression ignition engines or

heating systems, if used [for its] as intended [use]. The

department may release the noncompliant biodiesel blend

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or biodiesel for sale only when the department determines

the biodiesel blend or biodiesel is either brought into

compliance with this act or regulations promulgated under

this act or it would no longer be detrimental to the

operation of on-road compression ignition engines or

heating systems, if used [for its] as intended [use]. All

such biodiesel blend or biodiesel must be properly

labeled as to its noncompliant characteristics if

released and permitted to be sold without being brought

into compliance with this act or regulations promulgated

under this act. A person that knowingly sells, offers for

sale or otherwise transfers title to biodiesel blend or

biodiesel in this Commonwealth subject to a stop-sale

order for use by consumers [in on-road compression

ignition engines] commits a misdemeanor of the third

degree.

* * *

Section 6. Infrastructure reports.

* * *

(d) Insufficient infrastructure.--If any infrastructure

report determines that there is insufficient infrastructure in

place to meet any of the mandated volume standard requirements

contained in section 3, 3.1 or 4, that mandated content

requirement shall be delayed at least six months or until the

department and the Department of Transportation certify that

sufficient infrastructure is in place through the issuance of a

new infrastructure report, whichever is later.

Section 4. This act shall take effect in 60 days.

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