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KEY: stricken = removed, old language.underscored = new language to be added

scs0013a10

1.1Senator .................... moves to amend S.F. No. 13 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [116.741] DEFINITIONS.
1.4    Subdivision 1. Scope. For the purposes of sections 116.741 and 116.742, the terms
1.5defined in this section have the meanings given them.
1.6    Subd. 2. Carbon dioxide equivalent. "Carbon dioxide equivalent" means the
1.7amount of carbon dioxide by weight that would produce the same global warming impact
1.8as a given weight of another greenhouse gas, based on the best available science.
1.9    Subd. 3. Carbon intensity. "Carbon intensity" means the quantity, as measured on
1.10a full life-cycle basis, of carbon dioxide emission or carbon dioxide equivalent emission
1.11of other greenhouse gases, per BTU of energy provided by a transportation fuel.
1.12    Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
1.13Control Agency.
1.14    Subd. 5. Full life-cycle basis. "Full life-cycle basis" means all inputs and
1.15emissions related to the entire life cycle of a transportation fuel, including the production
1.16and extraction of the feedstock or other primary energy source, and the processing,
1.17transportation, storage, distribution, and combustion or other chemical conversion of
1.18the fuel.
1.19    Subd. 6. Motor vehicle. "Motor vehicle" means a vehicle that is self-propelled
1.20and designed for use on a public highway.
1.21    Subd. 7. Renewable transportation fuel producer. "Renewable transportation
1.22fuel producer" means a manufacturer or producer of alcohol from agricultural, woody,
1.23or other renewable feedstock for transportation fuel use. "Renewable transportation fuel
1.24producer" also includes a manufacturer or producer of transportation fuels that is not a
1.25"responsible party" as defined under subdivision 8.
1.26    Subd. 8. Responsible party. "Responsible party" means a refiner, producer, blender,
1.27or importer of transportation fuel for sale in this state who:
1.28(1) receives petroleum products in this state for storage and subsequent distribution
1.29by tank car or tank truck, or both;
1.30(2) produces, manufactures, or refines petroleum products for sale in this state; or
1.31(3) imports petroleum products into this state for sale within the state via boat, barge,
1.32truck, or pipeline for storage and subsequent delivery or further transportation from boat,
1.33barge, truck, or pipeline terminals in this state.
1.34Responsible party does not include a retailer or renewable transportation fuel producer.
2.1    Subd. 9. Transportation fuel. "Transportation fuel" means a fuel used to propel a
2.2motor vehicle.

2.3    Sec. 2. [116.742] TRANSPORTATION FUEL LOW-CARBON FUEL
2.4REDUCTION STANDARD.
2.5    Subdivision 1. Reduction standard. (a) A responsible party shall reduce the carbon
2.6intensity of transportation fuels it produces, refines, blends, or imports for sale in this
2.7state by an aggregate of at least ten percent over the ten-year period from 2011 through
2.82020. Unless a different reduction schedule is determined by the commissioner for a
2.9particular responsible party, the reduction must be at least one percent each year in the
2.10period 2011 through 2020. The reduction must be measured by using the applicable
2.11carbon intensity value of a responsible party for a particular transportation fuel that is set
2.12by law, rule specifically adopted pursuant to this section, or other determination of the
2.13commissioner. Upon request of a responsible party, the commissioner shall, after notice
2.14and hearing, determine a different reduction schedule for a particular responsible party if
2.15the responsible party demonstrates that the public interest is served by a different schedule.
2.16(b) There is no exclusive method to achieve the reduction. Methods of reduction
2.17can include, among others:
2.18(1) blending high-carbon intensity fuels with low-carbon intensity fuels; and
2.19(2) changes in production or extraction methods, and other activities reducing
2.20carbon intensity.
2.21(c) The commissioner shall advise and assist responsible parties and others on
2.22methods to achieve the reduction standard.
2.23    Subd. 2. Exception to reduction standard. A responsible party may not be
2.24penalized for the failure to meet its reduction standard to the extent that the commissioner
2.25grants a delay under this subdivision. The commissioner may grant a delay to a responsible
2.26party from a reduction standard if the commissioner determines the reduction standard:
2.27    (1) is not achievable because the federal government has not granted a waiver for
2.28E-20 gasoline;
2.29    (2) will itself cause an excessive increase in transportation fuel prices; or
2.30    (3) is not achievable due to inadequate supplies of lower carbon intensity
2.31transportation fuels.
2.32    A responsible party may petition the commissioner at any time for a determination
2.33under this subdivision. The determination must be made after notice and hearing.
2.34    Subd. 3. Carbon intensity values. Unless a different carbon intensity value is set
2.35pursuant to subdivision 4, the table in this subdivision sets the carbon intensity value for
3.1the identified transportation fuels for a responsible party and renewable transportation
3.2fuel producer for 2011. The commissioner shall use a 2005-year baseline to determine
3.3compliance with the reduction standard.
3.4
Transportation Fuel
Carbon Intensity Value
3.5
Gasoline
1.000
3.6
Diesel
0.987
3.7
Corn ethanol
0.765
3.8
Cellulosic ethanol
0.115
3.9
Coal to liquids
2.443
3.10
Biodiesel
0.350
3.11    Subd. 4. Alternative carbon intensity value. A responsible party or renewable
3.12transportation fuel producer may propose to the commissioner a carbon intensity value
3.13for a transportation fuel it produces, blends, or imports different than the value set
3.14by subdivision 3. A party proposing a different value has the burden to show by a
3.15preponderance of scientific evidence that the value set by subdivision 3 is not appropriate.
3.16If the commissioner, after consultation with the commissioner of agriculture, finds after
3.17notice and hearing that a party has met this burden, the commissioner shall set a value
3.18for the transportation fuel based on the evidence in the record. A party proposing a
3.19different intensity value is rebuttably presumed to have met its burden if it proposes
3.20an alternative carbon intensity value by applying the "Greenhouse Gases, Regulated
3.21Emissions, and Energy Use in Transportation (GREET) model developed by the Argonne
3.22National Laboratory.
3.23    Subd. 5. Reporting. A responsible party shall report annually from 2011 through
3.242020 to the commissioner on activities it has taken or plans to take to achieve the reduction
3.25standard. A responsible party shall report to the commissioner information requested
3.26by the commissioner to assist the commissioner in determining whether the reduction
3.27standard of this section has been or will be met. Beginning in 2013, the commissioner
3.28shall require responsible parties to demonstrate achievement of the standard reduction
3.29by submitting evidence of its transportation fuel carbon content. The commissioner may
3.30accept reports filed under other state and federal law for purposes of compliance with this
3.31section to the extent those other reports contain information required under this section.
3.32    Subd. 6. Compliance; penalty. The commissioner shall require a responsible
3.33party to report information and cooperate with the commissioner to determine whether
3.34the reduction standard of this section is being achieved. Beginning in 2014, a responsible
3.35party may be penalized up to twice the least cost necessary for the responsible party
3.36to achieve the reduction standard net of other reductions achieved. The penalty may
4.1be imposed for each year the reduction standard is not achieved. The commissioner
4.2shall consider the efforts of the responsible party to achieve the reduction standard in
4.3determining whether to impose a penalty and in determining the amount of a penalty.
4.4    Subd. 7. Rules. The commissioner shall, by December 10, 2010, adopt rules
4.5necessary to implement and administer this section.

4.6    Sec. 3. ALTERNATIVE CARBON INTENSITY VALUE; INDIRECT EFFECTS
4.7STUDY; VALUE ESTABLISHMENT MORATORIUM.
4.8    The commissioners of the Pollution Control Agency and the Department of
4.9Agriculture must jointly study the impact of indirect effects on the calculation of
4.10alternative carbon intensity values under section 2. The commissioners must, by January
4.1115, 2010, report the results of the study to the chairs of the legislative committees with
4.12primary jurisdiction over energy and environmental policy. The report may include
4.13recommendations for legislation. The commissioner may not establish an alternative
4.14carbon intensity value under section 2, subdivision 4, until June 30, 2010."