75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3670
A-Engrossed
House Bill 3463
Ordered by the House April 29
Including House Amendments dated April 29
Sponsored by Representatives JENSON, CLEM; Representatives
BAILEY, BARNHART, CAMERON, Senators NELSON, ROSENBAUM
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Requires notice to dealers when capacity of biodiesel
production facilities in Oregon reaches specified levels.
Prohibits sale of diesel fuel that does not contain specified
percentage of biodiesel after certain date. { - Deletes
provisions allowing specified percentage of other renewable
diesel in place of biodiesel for use in diesel fuel. - } { +
Prohibits sale of other renewable diesel until January 2,
2012. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to biodiesel; creating new provisions; amending ORS
646.905, 646.921, 646.922, 646.923 and 646.957 and section 16,
chapter 739, Oregon Laws 2007; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 646.921 is amended to read:
646.921. (1) The State Department of Agriculture shall study
and monitor biodiesel fuel production, use and sales and
certificates of analysis in this state.
{ - (2) When the production of biodiesel in this state from
sources in Oregon, Washington, Idaho and Montana reaches a level
of at least 5 million gallons on an annualized basis for at least
three months, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state, in a
notice that meets the requirements of subsection (5) of this
section. - }
{ + (2) At least two weeks before each of the dates specified
in paragraphs (a) and (b) of this subsection, the department
shall notify all retail dealers, nonretail dealers and wholesale
dealers in this state that the capacity of biodiesel production
facilities in Oregon has reached a level of at least five million
gallons on an annualized basis and that a retail dealer,
nonretail dealer or wholesale dealer may sell or offer for sale
diesel fuel only as described in ORS 646.922 (1) as follows:
(a) After August 1, 2009, in the counties of:
(A) Clackamas;
(B) Clatsop;
(C) Columbia;
(D) Marion;
(E) Multnomah;
(F) Polk;
(G) Tillamook;
(H) Washington; and
(I) Yamhill; and
(b) After October 1, 2009, in all other counties in this state
not included in paragraph (a) of this subsection. + }
(3) When the { - production of biodiesel in this state from
sources in Oregon, Washington, Idaho and Montana - }
{ + capacity of biodiesel production facilities in Oregon + }
reaches a level of at least 15 million gallons on an annualized
basis { - for at least three months - } , the department shall
notify all retail dealers, nonretail dealers and wholesale
dealers in this state { - , in a notice that meets the
requirements of subsection (5) of this section - } { + that the
capacity of biodiesel production facilities in Oregon has reached
a level of at least 15 million gallons on an annualized basis and
that a retail dealer, nonretail dealer or wholesale dealer may
sell or offer for sale diesel fuel only as described in ORS
646.922 (2) after the date that is two months after the date of
the notice given by the department under this subsection + }.
(4) All retail dealers, nonretail dealers and wholesale dealers
in Oregon are required to provide, upon the request of the
department, a certificate of analysis for biodiesel received.
{ - (5) The notices required under this section shall inform
retail dealers, nonretail dealers and wholesale dealers that: - }
{ - (a) The production of biodiesel has reached the level
described in subsection (2) or (3) of this section, as
appropriate; and - }
{ - (b) Three months after the date of the notice, a retail
dealer, nonretail dealer or wholesale dealer may sell or offer
for sale diesel fuel only as described in ORS 646.922. - }
SECTION 2. ORS 646.922 is amended to read:
646.922. (1) { - Three months after the date - } { + Upon
receipt + } of the notice given under ORS 646.921 (2), a retail
dealer, nonretail dealer or wholesale dealer may not sell or
offer for sale diesel fuel unless the diesel fuel contains at
least two percent biodiesel by volume { - or other renewable
diesel with at least two percent renewable component by
volume - } .
(2) { - Three - } { + Two + } months after the date of the
notice given under ORS 646.921 (3), a retail dealer, nonretail
dealer or wholesale dealer may not sell or offer for sale diesel
fuel unless the diesel fuel contains at least five percent
biodiesel by volume
{ - or other renewable diesel with at least five percent
renewable component by volume - } . Diesel fuel containing more
than five percent biodiesel by volume { - or other renewable
diesel with more than five percent renewable component by
volume - } must be labeled as provided by the State Department
of Agriculture by rule.
(3) The department shall adopt standards for biodiesel { - or
other renewable diesel - } sold in this state. The department
shall consult the specifications established for biodiesel
{ - or other renewable diesel - } by ASTM International in
forming its standards. The department may review specifications
adopted by ASTM International, or equivalent organizations, and
revise the standards adopted pursuant to this subsection as
necessary.
(4) The minimum biodiesel fuel content { - or renewable
component in other renewable diesel - } requirements under
subsections (1) and (2) of this section do not apply to diesel
fuel sold or offered for sale for use by railroad locomotives,
marine engines or home heating.
SECTION 3. ORS 646.905 is amended to read:
646.905. As used in ORS 646.910 to 646.923:
(1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
(2) 'Biodiesel' means a motor vehicle fuel consisting of
mono-alkyl esters of long chain fatty acids derived from
vegetable oils, animal fats or other nonpetroleum resources, not
including palm oil, designated as B100 and complying with ASTM D
6751.
(3) 'Certificate of analysis' means:
(a) A document verifying that B100 biodiesel has been analyzed
and complies with, at a minimum, the following ASTM D 6751
biodiesel fuel test methods and specifications:
(A) Flash point (ASTM D 93);
(B) Acid number (ASTM D 664);
(C) Cloud point (ASTM D 2500);
(D) Water and sediment (ASTM D 2709);
(E) Visual appearance (ASTM D 4176);
(F) Free glycerin (ASTM D 6854); and
(G) Total glycerin (ASTM D 6854); and
(b) Certification of feedstock origination describing the
percent of the feedstock sourced outside of the states of Oregon,
Washington, Idaho and Montana.
(4) 'Co-solvent' means an alcohol other than methanol which is
blended with either methanol or ethanol or both to minimize phase
separation in gasoline.
(5) 'Ethanol' means ethyl alcohol, a flammable liquid having
the formula C2H5OH used or sold for the purpose of blending or
mixing with gasoline for use in motor vehicles.
(6) 'Gasoline' means any fuel sold for use in spark ignition
engines whether leaded or unleaded.
(7) 'Methanol' means methyl alcohol, a flammable liquid having
the formula CH3OH used or sold for the purpose of blending or
mixing with gasoline for use in motor vehicles.
(8) 'Motor vehicles' means all vehicles, vessels, watercraft,
engines, machines or mechanical contrivances that are propelled
by internal combustion engines or motors.
(9) 'Nonretail dealer' means any person who owns, operates,
controls or supervises an establishment at which motor vehicle
fuel is dispensed through a card- or key-activated fuel
dispensing device to nonretail customers.
{ - (10) 'Other renewable diesel' means a diesel fuel
substitute, produced from nonfossil renewable resources, that has
an established ASTM standard, is approved by the United States
Environmental Protection Agency, meets specifications of the
National Conference on Weights and Measures, and complies with
standards promulgated under ORS 646.957. - }
{ - (11) - } { + (10) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which gasoline is sold or offered for sale to the public.
{ - (12) - } { + (11) + } 'Wholesale dealer' means any
person engaged in the sale of gasoline if the seller knows or has
reasonable cause to believe the buyer intends to resell the
gasoline in the same or an altered form to another.
SECTION 4. ORS 646.923 is amended to read:
646.923. (1) Each biodiesel { - or other renewable diesel - }
producer, each operator of a biodiesel bulk facility and each
person who imports biodiesel { - or other renewable diesel - }
into this state for sale in this state shall keep for at least
one year, at the person's registered place of business, the
certificate of analysis for each batch or production lot of B100
biodiesel sold or delivered in this state.
(2) The Director of Agriculture, or the director's authorized
agent, upon reasonable oral or written notice, may make such
examinations of books, papers, records and equipment the director
requires to be kept by a biodiesel { - or other renewable
diesel - } producer, facility operator or importer as may be
necessary to carry out the duties of the director under ORS
646.910 to 646.923.
(3) The director, or the director's authorized agent, may test
biodiesel { - or other renewable diesel - } for the purpose of
inspecting the biodiesel { - or other renewable diesel - } of
any producer, bulk facility, business or other establishment that
sells, offers for sale, distributes, transports, hauls, delivers
or stores biodiesel { - or other renewable diesel - } that is
subsequently sold or offered for sale, for compliance with the
motor fuel quality standards adopted pursuant to ORS 646.957.
(4) For the purpose of ensuring the quality of B100 biodiesel,
the director, or the director's authorized agent, may obtain, at
no cost to the department and as often as deemed necessary, a
representative sample of B100 biodiesel from any producer, bulk
facility, business or other establishment that sells, offers for
sale, distributes, transports, hauls, delivers or stores
biodiesel. The State Department of Agriculture shall adopt rules
establishing the number of samples to be tested. The entire cost
of transportation and testing of the samples shall be the
responsibility of and invoiced directly to the business from
which the sample was obtained.
SECTION 5. ORS 646.957 is amended to read:
646.957. (1) In accordance with any applicable provision of ORS
chapter 183, the Director of Agriculture, not later than December
1, 1997, shall adopt rules to carry out the provisions of ORS
646.947 to 646.963. Such rules may include, but are not limited
to, motor vehicle fuel grade advertising, pump grade labeling,
testing procedures, quality standards and identification
requirements for motor vehicle fuels and ethanol { - , - } { +
and + } biodiesel
{ - and other renewable diesel - } , as those terms are defined
in ORS 646.905. Rules adopted by the director under this section
shall be consistent, to the extent the director considers
appropriate, with the most recent standards adopted by the
American Society for Testing and Materials. As standards of the
society are revised, the director shall revise the rules in a
manner consistent with the revisions unless the director
determines that those revised rules will significantly interfere
with the director's ability to carry out the provisions of ORS
646.947 to 646.963. Rules adopted pursuant to this section must
adequately protect confidential business information and trade
secrets that the director or the director's authorized agent may
discover when inspecting books, papers and records pursuant to
ORS 646.955.
(2) Testing requirements, specifications and frequency of
testing for each production lot of biodiesel { - , - } { +
or + } biodiesel blend
{ - or other renewable diesel - } produced in or brought into
this state shall be defined by the director by rule.
SECTION 6. ORS 646.922, as amended by section 2 of this 2009
Act, is amended to read:
646.922. (1) Upon receipt of the notice given under ORS 646.921
(2), a retail dealer, nonretail dealer or wholesale dealer may
not sell or offer for sale diesel fuel unless the diesel fuel
contains at least two percent biodiesel by volume { + or other
renewable diesel with at least two percent renewable component by
volume + }.
(2) Two months after the date of the notice given under ORS
646.921 (3), a retail dealer, nonretail dealer or wholesale
dealer may not sell or offer for sale diesel fuel unless the
diesel fuel contains at least five percent biodiesel by
volume { + or other renewable diesel with at least five percent
renewable component by volume + }. Diesel fuel containing more
than five percent biodiesel by volume { + or other renewable
diesel with more than five percent renewable component by
volume + } must be labeled as provided by the State Department of
Agriculture by rule.
(3) The department shall adopt standards for biodiesel { + or
other renewable diesel + } sold in this state. The department
shall consult the specifications established for biodiesel
{ + or other renewable diesel + } by ASTM International in
forming its standards. The department may review specifications
adopted by ASTM International, or equivalent organizations, and
revise the standards adopted pursuant to this subsection as
necessary.
(4) The minimum biodiesel fuel content { + or renewable
component in other renewable diesel + } requirements under
subsections (1) and (2) of this section do not apply to diesel
fuel sold or offered for sale for use by railroad locomotives,
marine engines or home heating.
SECTION 7. ORS 646.905, as amended by section 3 of this 2009
Act, is amended to read:
646.905. As used in ORS 646.910 to 646.923:
(1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
(2) 'Biodiesel' means a motor vehicle fuel consisting of
mono-alkyl esters of long chain fatty acids derived from
vegetable oils, animal fats or other nonpetroleum resources, not
including palm oil, designated as B100 and complying with ASTM D
6751.
(3) 'Certificate of analysis' means:
(a) A document verifying that B100 biodiesel has been analyzed
and complies with, at a minimum, the following ASTM D 6751
biodiesel fuel test methods and specifications:
(A) Flash point (ASTM D 93);
(B) Acid number (ASTM D 664);
(C) Cloud point (ASTM D 2500);
(D) Water and sediment (ASTM D 2709);
(E) Visual appearance (ASTM D 4176);
(F) Free glycerin (ASTM D 6854); and
(G) Total glycerin (ASTM D 6854); and
(b) Certification of feedstock origination describing the
percent of the feedstock sourced outside of the states of Oregon,
Washington, Idaho and Montana.
(4) 'Co-solvent' means an alcohol other than methanol which is
blended with either methanol or ethanol or both to minimize phase
separation in gasoline.
(5) 'Ethanol' means ethyl alcohol, a flammable liquid having
the formula C2H5OH used or sold for the purpose of blending or
mixing with gasoline for use in motor vehicles.
(6) 'Gasoline' means any fuel sold for use in spark ignition
engines whether leaded or unleaded.
(7) 'Methanol' means methyl alcohol, a flammable liquid having
the formula CH3OH used or sold for the purpose of blending or
mixing with gasoline for use in motor vehicles.
(8) 'Motor vehicles' means all vehicles, vessels, watercraft,
engines, machines or mechanical contrivances that are propelled
by internal combustion engines or motors.
(9) 'Nonretail dealer' means any person who owns, operates,
controls or supervises an establishment at which motor vehicle
fuel is dispensed through a card- or key-activated fuel
dispensing device to nonretail customers.
{ + (10) 'Other renewable diesel' means a diesel fuel
substitute, produced from nonfossil renewable resources, that has
an established ASTM standard, is approved by the United States
Environmental Protection Agency, meets specifications of the
National Conference on Weights and Measures, and complies with
standards promulgated under ORS 646.957. + }
{ - (10) - } { + (11) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which gasoline is sold or offered for sale to the public.
{ - (11) - } { + (12) + } 'Wholesale dealer' means any
person engaged in the sale of gasoline if the seller knows or has
reasonable cause to believe the buyer intends to resell the
gasoline in the same or an altered form to another.
SECTION 8. ORS 646.923, as amended by section 4 of this 2009
Act, is amended to read:
646.923. (1) Each biodiesel { + or other renewable diesel + }
producer, each operator of a biodiesel bulk facility and each
person who imports biodiesel { + or other renewable diesel + }
into this state for sale in this state shall keep for at least
one year, at the person's registered place of business, the
certificate of analysis for each batch or production lot of B100
biodiesel sold or delivered in this state.
(2) The Director of Agriculture, or the director's authorized
agent, upon reasonable oral or written notice, may make such
examinations of books, papers, records and equipment the director
requires to be kept by a biodiesel { + or other renewable
diesel + } producer, facility operator or importer as may be
necessary to carry out the duties of the director under ORS
646.910 to 646.923.
(3) The director, or the director's authorized agent, may test
biodiesel { + or other renewable diesel + } for the purpose of
inspecting the biodiesel { + or other renewable diesel + } of
any producer, bulk facility, business or other establishment that
sells, offers for sale, distributes, transports, hauls, delivers
or stores biodiesel { + or other renewable diesel + } that is
subsequently sold or offered for sale, for compliance with the
motor fuel quality standards adopted pursuant to ORS 646.957.
(4) For the purpose of ensuring the quality of B100 biodiesel,
the director, or the director's authorized agent, may obtain, at
no cost to the department and as often as deemed necessary, a
representative sample of B100 biodiesel from any producer, bulk
facility, business or other establishment that sells, offers for
sale, distributes, transports, hauls, delivers or stores
biodiesel. The State Department of Agriculture shall adopt rules
establishing the number of samples to be tested. The entire cost
of transportation and testing of the samples shall be the
responsibility of and invoiced directly to the business from
which the sample was obtained.
SECTION 9. ORS 646.957, as amended by section 5 of this 2009
Act, is amended to read:
646.957. (1) In accordance with any applicable provision of ORS
chapter 183, the Director of Agriculture, not later than December
1, 1997, shall adopt rules to carry out the provisions of ORS
646.947 to 646.963. Such rules may include, but are not limited
to, motor vehicle fuel grade advertising, pump grade labeling,
testing procedures, quality standards and identification
requirements for motor vehicle fuels and ethanol { + , + }
{ - and - } biodiesel { + and other renewable diesel + }, as
those terms are defined in ORS 646.905. Rules adopted by the
director under this section shall be consistent, to the extent
the director considers appropriate, with the most recent
standards adopted by the American Society for Testing and
Materials. As standards of the society are revised, the director
shall revise the rules in a manner consistent with the revisions
unless the director determines that those revised rules will
significantly interfere with the director's ability to carry out
the provisions of ORS 646.947 to 646.963. Rules adopted pursuant
to this section must adequately protect confidential business
information and trade secrets that the director or the director's
authorized agent may discover when inspecting books, papers and
records pursuant to ORS 646.955.
(2) Testing requirements, specifications and frequency of
testing for each production lot of biodiesel { + , + }
{ - or - } biodiesel blend { + or other renewable diesel + }
produced in or brought into this state shall be defined by the
director by rule.
SECTION 10. Section 16, chapter 739, Oregon Laws 2007, is
amended to read:
{ + Sec. 16. + } { - Sections 14 and 15 of this 2007
Act - } { + ORS 646.922 (2) and 646.923 + } become operative on
a date that is { - three - } { + two + } months following the
date of the first notice required under
{ - section 13 (2) of this 2007 Act - } { + ORS 646.921
(3) + }.
SECTION 11. { + The amendments to ORS 646.905, 646.922,
646.923 and 646.957 by sections 6 to 9 of this 2009 Act become
operative on January 2, 2012. + }
SECTION 12. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
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