February 8, 2005, Introduced by Reps. Nitz, Vander Veen, Kathleen Law, Mayes, Ball, Pearce and Kahn and referred to the Committee on Agriculture.
A bill to amend 1984 PA 44, entitled
"Motor fuels quality act,"
by amending sections 2, 3, and 5 (MCL 290.642, 290.643, and
290.645), section 2 as amended by 1993 PA 236 and sections 3 and 5
as amended by 2002 PA 13.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Additive" means any substance in gasoline other than
gasoline but does not include approved blending components, other
than lead, sodium, and phosphate components, introduced at
refineries or terminals as octane or product quality enhancers in
quantities of less than 1% of volume.
(b) "American society for testing and materials" means an
international nonprofit scientific and educational society devoted
to the promotion of knowledge of the materials of engineering and
the standardization of specification and methods of testing.
(c) "Antiknock index" or "AKI" means an index number arrived
at by adding the motor octane number and the research octane
number, then dividing by 2.
(d) "Biodiesel" means a fuel composed of mono-alkyl esters of
long chain fatty acids derived from vegetable oils or animal fats,
and, in accordance with standards specified by the American society
for testing and materials, designated B100, and meeting the
requirements of D-6751, as approved by the department.
"Blender" means a person
who as an individual or
through his or her agent adds an oxygenate to a gasoline.
user" means a person who is an
ultimate consumer of gasoline and receives delivery of gasoline
into a storage tank of at least 550-gallon capacity substantially
under his or her control.
"CARB" means the California
air resources board.
"Delivery vessel" means
a tank truck, tank equipped
trailer, or a similar vessel used for the delivery of gasoline to a
"Department" means the
department of agriculture.
(j) "Diesel fuel" means any liquid other than gasoline that is
capable of use as a fuel or a component of a fuel in a motor
vehicle that is propelled by a diesel-powered engine or in a
"Director" means the
director of the department of
agriculture or his or her authorized representative.
means a site used for vehicle
gasoline refueling that is located in an area of this state that
has been designated as ozone nonattainment and classified as
serious, severe, or extreme by the E.P.A. pursuant to 40
CFR section 81.323, November
6, 1991. Dispensing facility
does not include a facility used exclusively for the refueling of
aircraft, watercraft, or vehicles that are designed for
agricultural purposes and used exclusively in agricultural
"Dispensing unit" means
a device designed for the
delivery of gasoline in which 1 nozzle equates to 1 dispensing
( l ) "Distributor"
means a person who purchases,
transports, or stores or causes the transportation or storage of
gasoline at any point between a gasoline refinery and a retail
outlet or bulk purchaser-end user facility.
"E.P.A." means the United States
"Gasoline" means any
fuel sold in this state that
is suitable for use in spark-ignition internal combustion engines,
and commonly or commercially known or sold as gasoline.
"Leak" means liquid or
vapor loss from the gasoline
dispensing system or stage I or stage II vapor-recovery system as
determined by visual inspection or functional testing.
"Modification" means any
change, removal, or
addition, other than an identical replacement, of any component
contained within a stage I or stage II vapor-recovery system. The
resultant modification must constitute an approved vapor-recovery
"Motor octane number" or
"MON" means a knock
characteristic of gasoline determined by use of standard procedures
on a motor engine.
"Operator" means a
person who owns, leases,
operates, manages, supervises, or controls, directly or indirectly,
a gasoline-dispensing facility.
"Oxygenate" means an
organic compound, such as alcohol or ether, that may be used as
fuel or fuel supplement.
"Person" means an
individual, sole proprietorship,
partnership, corporation, association, or other legal entity.
"Refiner" means a person
who owns, leases,
operates, controls, or supervises a refinery.
"Refinery" means a plant
at which gasoline or
diesel fuel is produced.
"Research octane number"
or "RON" means a knock
characteristic of gasoline determined by use of standard procedures
on a research engine.
"Retail dealer" means a
person who owns, leases,
operates, controls, or supervises a retail outlet.
"Retail outlet" means an
establishment at which
gasoline is sold or offered for sale to the public.
"Rule" means a rule
promulgated pursuant to the
procedures act of 1969,
Act No. 306 of the Public Acts
of 1969, being sections 24.201 to 24.328 of the Michigan Compiled
Laws 1969 PA 306, MCL 24.201 to 24.328.
"Stage I vapor-recovery
system" means a vapor
tight collection system that is approved by the department and is
designed to capture the gasoline vapors displaced during delivery
into a stationary storage tank and to return not less than 90% of
the displaced vapors to the delivery vessel.
"Stage II vapor-recovery
system" means a
gasoline-dispensing system approved by the department that prevents
95% or more of the volatile organic compounds from being emitted
during gasoline refueling.
Sec. 3. (1) The director shall establish standards pursuant to
this act to ensure the purity and quality of gasoline and diesel
fuel sold or offered for sale in this state.
(2) The director shall establish standards for the amount and
type of additives allowed to be included in gasoline and diesel
(3) The director shall establish standards for the grading of
gasoline, including, but not limited to, subregular with a minimum
85 AKI, regular with a minimum 87 AKI and a minimum 82 MON,
midgrade 88 with a minimum 88 AKI and a minimum 82 MON, midgrade 89
with a minimum 89 AKI and a minimum 83 MON, premium with a minimum
90 AKI, premium 91 with a minimum 91 AKI, premium 92 with a minimum
92 AKI, premium 93 with a minimum 93 AKI, and premium 94 with a
minimum 94 AKI.
(4) The director shall establish standards for Reid vapor
pressure as specified by the American society for testing and
materials, except as otherwise required to conform to federal or
state law. The director shall establish the Reid vapor pressure as
9.0 pounds per square inch (psi) for retail outlets during the
period beginning June 1 through September 15 of each year, except
for dispensing facilities where the director shall establish the
Reid vapor pressure as 7.8 psi in the year 1996 and thereafter. As
used in this subsection and section 10d, "Reid vapor pressure"
means the vapor pressure of gasoline or gasoline oxygenate blend as
determined by ASTM test method D323, standard test method for vapor
pressure of petroleum products (Reid method) or test method D4953,
standard test method for vapor pressure of gasoline and gasoline
oxygenate blends (dry method).
(5) In establishing additive and grading standards the
director shall adopt the latest standards for gasoline established
by the American society for testing and materials and shall adopt
the latest standards for gasoline established by federal law or
regulation. The standards established by the director shall not
prohibit a gasoline blend that is permitted by a valid waiver
granted by the United States environmental protection agency
pursuant to the fuel or fuel additive waiver in section 211(f)(4)
part A of title II of the clean air act,
chapter 360, 81 Stat. 502,
42 U.S.C. USC
7545, and the ethanol waiver of 1.0 psi in
211(h)(4) of part A of title II of the clean air act,
360, 81 Stat. 502, 42 U.S.C. USC
7545, if the gasoline
blend meets all of the conditions set forth in the waiver.
Beginning June 1, 2003, the director shall not permit the use of
the additive methyl tertiary butyl ether (MTBE) in this state. The
director, in consultation with the department of environmental
quality, shall determine if the additive is likely to cause harmful
effects on the environment or public health within the state. By
June 1, 2002, the director, in consultation with the director of
the department of environmental quality, shall review the status of
the use of MTBE in this state. The review shall include the
(a) The amount of the additive methyl tertiary butyl ether
(MTBE) currently in use in gasoline in this state.
(b) An estimate of the amount of MTBE that is imported in
gasoline transported into this state from other states or
(c) Recommendations as to whether the June 1, 2003 prohibition
can be achieved and, if not, determine a more feasible date.
(d) Any other information considered appropriate.
(6) The director shall establish standards pursuant to this
act to ensure the purity and quality of diesel fuel sold or offered
for sale in this state. Beginning June 30, 2006, the director shall
determine the annual capacity for the production of biodiesel fuel
in this state and, within 30 days of making the determination,
shall publish the annual capacity for the production of biodiesel
fuel in this state. Beginning January 1, 2007, within 30 days of
the publication that the annual capacity for the production of
biodiesel fuel in this state is greater than 12,000,000 gallons,
standards for diesel fuel sold or offered for sale in this state
shall include a requirement that the composition of diesel fuel
sold in this state include at least 2% biodiesel. This minimum
content requirement does not apply to diesel fuel sold for use in
railroad locomotives or to diesel fuel sold for use in off-road
taconite and copper mining equipment and machinery.
Standards established pursuant to
shall be by rules promulgated pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 5. (1) Except as provided by federal law or regulation,
in the manufacture of gasoline or diesel fuel at any refinery in
this state, a refiner shall not manufacture gasoline or diesel fuel
at a refinery in this state unless the gasoline or diesel fuel
meets the requirements in section 3. Except as provided by federal
law or regulation, a blender shall not blend gasoline unless the
finished blend meets the requirements in section 3.
(2) Except as provided by federal law or regulation, a
distributor shall not sell or transfer to any distributor, retail
dealer, or bulk purchaser-end user any gasoline or diesel fuel
unless that gasoline or diesel fuel meets the requirements in
(3) A carrier or an employee or agent of a carrier, whether
operating under contract or tariff, shall not cause gasoline or
diesel fuel tendered to the carrier for shipment or transfer to
another carrier, distributor, or retail dealer to fail to comply,
at the time of delivery, with the requirements in section 3.
(4) A person shall not knowingly sell, dispense, or offer for
sale gasoline or diesel fuel unless that gasoline or diesel fuel
meets the requirements in section 3.
(5) A refiner or distributor shall not transfer, sell,
dispense, or offer gasoline for sale in this state to a distributor
unless the refiner or distributor indicates on each bill, invoice,
or other instrument evidencing a delivery of gasoline, the name of
the wholesale distributor who received delivery of the gasoline.
(6) A distributor or refiner shall not transfer, sell,
dispense, or offer gasoline for sale in this state to a retail
dealer unless the distributor indicates on each bill, invoice, or
other instrument evidencing a delivery of gasoline, the name and
license number issued pursuant to this act, of the retail dealer
who received delivery of the gasoline.
(7) A bill, invoice, or other instrument evidencing a delivery
of gasoline issued by a refiner or distributor for deliveries of
gasoline to purchasers who are not required to hold a license
issued pursuant to the motor fuel tax act, 2000 PA 403, MCL
207.1001 to 207.1170, or this act shall clearly indicate the name
and address and other information necessary to identify the
purchaser of the gasoline.
(8) A bill, invoice, or other instrument evidencing a delivery
of gasoline required by subsection (5), (6), or (7) shall include a
guarantee that the gasoline delivered meets the requirements in
section 3 and shall indicate the concentration range of alcohol in
the gasoline, except for alcohols or ethers that have a molecular
weight greater than ethanol and are not mixed with methanol or
ethanol, or both, and shall indicate the possible presence, without
regard to concentration range, of any alcohols or ethers that have
a molecular weight greater than ethanol and are not mixed with
methanol or ethanol, or both.
(9) A refiner, distributor, bulk purchaser-end user, or retail
dealer shall not transfer, sell, dispense, or offer gasoline for
sale unless that gasoline is visibly free of undissolved water,
sediments, and other suspended matter and is clear and bright at an
ambient temperature or 70 degrees Fahrenheit, whichever is greater.
(10) A person who violates this section or rules promulgated
under this section is liable for a civil fine not to exceed
$10,000.00 for each day of the continuance of the violation. A
civil fine ordered pursuant to this section shall be submitted to
the state treasurer for deposit in the gasoline inspection and
testing fund created by section 8.