75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 3463
Sponsored by Representatives JENSON, CLEM; Representatives
BAILEY, BARNHART, CAMERON, Senators NELSON, ROSENBAUM
CHAPTER ................
AN ACT
Relating to biodiesel; creating new provisions; amending ORS
646.921 and 646.922 and section 16, chapter 739, Oregon Laws
2007; and declaring an emergency.
The Legislative Assembly finds that:
(1) The technology to produce other renewable diesel is not
fully developed, approval of other renewable diesel as a
registered fuel by the United States Environmental Protection
Agency has been obtained in only one state and production of
other renewable diesel for general market consumption is not
occurring in Oregon or any other state at the present time.
(2) Appropriate definitions and standards for the production
and use of other renewable diesel have not been fully ascertained
or established.
(3) The efficiencies and consequences of producing and using
diesel fuel that contains other renewable diesel are unknown and
remain to be identified on a national level.
(4) It would be premature for Oregon to establish required
percentages of other renewable diesel in diesel fuel sold or
offered for sale in Oregon given the lack of technology and
standards for the production and use of other renewable diesel.
Given the interest in other renewable diesel, it is anticipated
that a market for, and the means for production of, other
renewable diesel will be established within the next two years,
at which time the legislature may enact appropriate legislation
requiring specified percentages of other renewable diesel in
diesel fuel sold or offered for sale in Oregon.
(5) It would not serve the interests of encouraging the
development of a market and the means for production of other
renewable diesel to implement a ban or prohibition on other
renewable diesel; therefore it is the policy of this state to not
prohibit the production, sale or use of other renewable diesel,
whether produced in Oregon or another state.
(6) The technology and standardization for production, use and
sale of biodiesel fuel currently exists to a commercially viable
degree in Oregon and elsewhere.
(7) Given the current state of the market for and the means to
produce biodiesel fuel, it is a legitimate and appropriate
exercise of Oregon's police powers to regulate the production,
use and sale of biodiesel fuel in this state and to require
specified percentages of biodiesel to be contained in diesel fuel
sold or offered for sale in Oregon.
Be It Enacted by the People of the State of Oregon:
Enrolled House Bill 3463 (HB 3463-C) Page 1
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) { + and
Enrolled House Bill 3463 (HB 3463-C) Page 2
after the dates specified in ORS 646.921 (2)(a) and (b) + }, 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 646.922, 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) and after the dates specified in ORS 646.921 (2)(a) and (b),
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.
Enrolled House Bill 3463 (HB 3463-C) Page 3
SECTION 4. 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 5. { + The amendments to ORS 646.922 by section 3 of
this 2009 Act become operative on January 2, 2012. + }
SECTION 6. { + 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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Passed by House May 4, 2009
Repassed by House June 23, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 22, 2009
...........................................................
President of Senate
Enrolled House Bill 3463 (HB 3463-C) Page 4
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 3463 (HB 3463-C) Page 5