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BILL AS INTRODUCED 2007-2008

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H.182

Introduced by Representatives Grad of Moretown and Jewett of Ripton

Referred to Committee on

Date:

Subject:  Commerce and trade; weights and measures; home heating oil; biodiesel

Statement of purpose:  This bill proposes to establish a biofuel advisory committee to recommend an implementation plan for the use of biodiesel blend fuel in home heating oil and motor vehicle fuel in Vermont.  Issuance of an implementation plan by the committee would trigger the effective date for a requirement that all heating oil and motor vehicle fuel sold contain at least two percent biodiesel.

AN ACT RELATING TO THE USE OF BIODIESEL FUEL

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  FINDINGS

The general assembly finds that:

(1)  Using biodiesel blend fuel will reduce the state’s dependence on petroleum-based fuels for heating and transportation.

(2)  The combustion of petroleum fuel for home heating fuel and transportation produces carbon dioxide and is the largest source of greenhouse gas emissions in the state.  The use of biodiesel blend fuel throughout Vermont will reduce the amount of petroleum fuel combusted in the state and, therefore, result in a significant reduction of carbon dioxide emissions in the state.

(3)  Biodiesel fuel is an economically viable, clean-burning renewable fuel that can be used in existing internal combustion diesel engines with no engine or fuel station modifications.

(4)  The use of biodiesel blend fuel in the state will provide the farmers and agricultural industry of Vermont with a potential market for the production of biodiesel fuel and other alternative fuels.

(5)  It is in the interest of the citizens of the state to establish a market for biodiesel fuel by requiring a percentage of the state’s fuel supply to be renewable biodiesel that meets appropriate fuel quality standards, reduces our dependence on imports of foreign oil, improves the health and quality of the environment, and stimulates the creation of a new industry that benefits our farmers and rural communities.

Sec. 2.  3 V.S.A. § 2295 is added to read:

§ 2295.  BIOFUELS ADVISORY COMMITTEE

(a)  A biofuels advisory committee is established to advise the secretary of administration regarding the use of biofuels in Vermont and to set the goals and policies for biofuel production, implementation, and use in Vermont.  The biofuels advisory committee shall:

(1)  Summarize biofuel production capacity, storage facilities, and distribution facilities currently available in Vermont;

(2)  Estimate the biofuel production capacity, storage facilities, and distribution facilities needed in Vermont to meet the requirements of 9 V.S.A. § 2697b;

(3)  Develop recommendations for increasing biofuel production, storage facilities, and distribution facilities if such an increase would be required under subdivision (2) of this subsection;

(4)  Analyze the performance and quality of biofuel for use as heating fuel and as a motor vehicle fuel;

(5)  Consult with the department of buildings and general services in implementing the use of biodiesel blend heating fuel in state buildings;

(6)  Consult with the agency of transportation in implementing the use of biodiesel or other biofuel in state-owned motor vehicles.

(7)  Develop and issue a workplan for the implementation and use of biofuel as a heating fuel and motor vehicle fuel as required by 9 V.S.A.

§ 2697b and 10 V.S.A. § 579.  The workplan shall include a schedule for the implementation and use of biodiesel blend fuel in all state office buildings and garages where feasible.

(b)  Annually, on or before January 15, the biofuel advisory committee shall report to the house and senate committees on natural resources and energy, the house and senate committees on agriculture, the house committee on commerce, and the senate committee on finance with a report of its progress and findings to date.

(c)  The committee shall consist of the following members:

(1)  The secretary of administration or his or her designee;

(2)  The secretary of agriculture, food and markets or his or her designee;

(3)  The secretary of transportation or his or her designee;

(4)  The commissioner of buildings and general services or his or her designee;

(5)  Two members of the house of representatives appointed by the speaker of the house;

(6)  Two members of the senate appointed by the committee on committees;

(7)  A representative of the Vermont biofuels association appointed by the association;

(8)  A representative of the Vermont fuel dealers association appointed by the association; and

(9)  A representative of an environmental organization, to be appointed by the speaker of the house.

(d)  The committee may elect a chair and a vice chair and may hold public hearings.  The agency of administration shall provide staff support for the committee.

(e)  All members of the committee shall serve on the committee for the duration of the study unless circumstances dictate a permanent replacement.  Vacancies shall be appointed in the same manner as original appointments.

(f)  Legislative members are entitled to per diem payment and reimbursement for expenses pursuant to 2 V.S.A. § 406 and 32 V.S.A. § 1010.

Sec. 3.  9 V.S.A. § 2697b is added to read:

§ 2697b.  HEATING OIL CONTENT AND QUALITY

(a)  As used in this section, “biodiesel” means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from vegetable oil or animal fat which meets the American Society for Testing and Materials (ASTM) specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuel.

(b)  As of July 1, 2008, all diesel heating fuel sold or offered for sale in Vermont shall contain at least two percent biodiesel fuel by volume, except when:

(1)  The annual capacity for the production of biodiesel in the state does not exceed 1,000,000 gallons, as determined by the department of public service;

(2)  The supply of biodiesel available in Vermont is inadequate to meet the heating needs of the state as determined by the department of public service; or

(3)  The heating fuel is sold to an electricity generating plant regulated by the Nuclear Regulatory Commission.

Sec. 4.  10 V.S.A. § 579 is added to read:

§ 579.  DIESEL MOTOR VEHICLE FUEL CONTENT

(a)  All diesel fuel sold at retail, offered for sale at retail, distributed, or delivered in Vermont for use by motor vehicles shall contain at least two percent biodiesel fuel by volume.  As used in this section, “biodiesel fuel” means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from vegetable oil or animal fat that meets the American Society for Testing and Materials (ASTM) Specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

(b)  The diesel fuel content requirement of subsection (a) of this section shall not apply to diesel fuel used in motors located at an electric generating plant regulated by the U. S. Nuclear Regulatory Commission.

(c)  At any reasonable time for the purpose of ascertaining the state of compliance with this section, the secretary or any duly authorized officer, employee, or representative of the secretary may enter and inspect any property, premises, or place on or at which diesel fuel for use by motor vehicles is sold at retail, distributed, or delivered.  No authorized person shall refuse entry or access to or interfere with the inspection by the secretary or the authorized representative of the secretary.

(d)  The secretary may establish by rule requirements for the implementation of this section, including standards for diesel fuel composition, including diesel fuel containing greater than two percent biodiesel fuel; standards for the production or manufacture of diesel fuel containing at least two percent biodiesel fuel; and certification of the biodiesel fuel content of diesel fuel.

Sec. 5.  23 V.S.A. § 3002 is amended to read:

§ 3002.  Definitions

For the purposes of this chapter:

(1)  “Commissioner” means the commissioner of motor vehicles or any officer or employee of the department duly authorized by him or her to perform the functions herein mentioned or described;.

(2)  “Dealer” means any person who sells or delivers fuel into the fuel supply tanks of motor vehicles owned or operated by others;.

(3)  “Distributor” means any person who sells or delivers fuel into bulk storage tanks of a dealer or user;.

(4)  “Fuel” means clear diesel fuel that has not been dyed in accordance with 26 U.S.C. § 4082 or section 211(I) of the Clean Air Act and any blend of undyed diesel and other fuel used or a blend of biodiesel fuel and petroleum diesel fuel that contains at least two percent biodiesel fuel by volume suitable for use for the generation of power to proper motor vehicles;.

(5)  “Motor vehicle” means any self-propelled vehicle using fuel on the public highways and registered or required to be registered for operation thereon;.

(6)  “Motor bus” means any motor vehicle with a seating capacity of more than 20 persons;.

(7)  “Motor truck” means a motor vehicle designed primarily for the transportation of property and goods, and not primarily for the transportation of passengers;.

(8)  “Railroad fuel” means diesel fuel and any blend of diesel and other fuel used or suitable for use for the generation of power to propel a railroad train;.

(9)   “Use” means the consumption of fuel by a user to propel motor vehicles on the highways of the state;.

* * *

(11)  “Biodiesel fuel” means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from vegetable oil or animal fat which meets the American Society for Testing and Materials (ASTM) Specification

D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

(12)  “Petroleum diesel fuel” is a clear combustible liquid fuel derived from crude oil that has not been dyed in accordance with 26 U.S.C. § 4082 or section 211(i) of the Clean Air Act and that meets the sulfur content requirements of the U.S. Environmental Protection Agency under 40 C.F.R. part 80.

Sec. 6.  AGENCY OF TRANSPORTATION AND DEPARTMENT OF

             BUILDINGS AND GENERAL SERVICES REPORT

On or before January 15, 2008, the agency of transportation and the department of buildings and general services, working in collaboration or independently, shall report to the house and senate committees on natural resources and energy, the house and senate committees on agriculture, the house committee on commerce, and the senate committee on finance regarding the feasibility of using and implementing biofuels in state office buildings and state garages.  The report shall include:

(1)  A summary of any obstacles to biodiesel use in specific state buildings;

(2)  A schedule for implementing the use of biodiesel blend home heating fuel in all state buildings where feasible;

(3)  A summary of any obstacles to biodiesel use in specific state garages; and

(4)  A schedule for implementing the use of biodiesel in all state garages and state-owned automobiles where feasible.

Sec. 7.  EFFECTIVE DATE

(a)  This section and Secs. 1 (findings), 2 (biofuel advisory committee), and 6 (agency of transportation and department of buildings and general services report) shall take effect upon passage.

(b)  Secs. 3 (home heating oil content), 4 (diesel motor vehicle fuel content), and 5 (diesel fuel tax definitions) shall take effect one year after the biofuel advisory committee issues the workplan required by 3 V.S.A.

§ 2295(a)(7) for the implementation and use of biofuel as a home heating fuel and motor vehicle fuel.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us