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        PRIOR PRINTER'S NO. 1667                      PRINTER'S NO. 1982

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,
           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
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     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.






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