HOUSE BILL No. 5851

 

September 11, 2012, Introduced by Rep. Daley 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 4a (MCL 290.642, 290.643, and

 

290.644a), sections 2 and 4a as amended by 2006 PA 271 and section

 

3 as amended by 2008 PA 313.

 

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.

 

     (b) (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.

 

     (c) "ASTM" means the American society for testing and

 

materials international, 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.

 

     (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, ASTM, designated B100, and meeting the

 

requirements of ASTM D-6751, as approved by the department.

 

     (e) "Biodiesel blend" means a fuel comprised of a blend of

 

biodiesel fuel with petroleum-based diesel fuel, suitable for use

 

as a fuel in a compression-ignition internal combustion diesel

 

engine.

 

     (f) "Blender" means a person who as an individual or through

 

his or her agent adds an oxygenate to a gasoline.

 

     (g) "Bulk purchaser-end 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.

 

     (h) "CARB" means the California air resources board.

 

     (h) (i) "Delivery vessel" means a tank truck, tank equipped

 


trailer, or a similar vessel used for the delivery of gasoline to a

 

dispensing facility.

 

     (i) (j) "Department" means the department of agriculture and

 

rural development.

 

     (j) (k) "Diesel fuel" means any liquid other than gasoline

 

that is suitable for use as a fuel or a component of a fuel in a

 

compression-ignition internal combustion diesel engine.

 

     (k) (l) "Director" means the director of the department of

 

agriculture or his or her authorized representative.

 

     (l) (m) "Dispensing facility" means a site used for gasoline

 

refueling.

 

     (m) (n) "Dispensing unit" means a device designed for the

 

delivery of gasoline in which 1 nozzle equates to 1 dispensing

 

unit.

 

     (n) (o) "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.

 

     (p) "E.P.A." means the United States environmental protection

 

agency.

 

     (o) (q) "Gasoline" means a volatile mixture of liquid

 

hydrocarbons generally containing small amounts of additives

 

suitable for use in spark-ignition internal combustion engines, and

 

commonly or commercially known or sold as gasoline.

 

     (p) (r) "Hydrogen fuel" means a substance containing the

 

chemical formula H2 that exists as a colorless, odorless, and highly

 

flammable gas except at low cryogenic temperatures or when highly

 


compressed, that is gaseous or liquefied, and that is suitable for

 

use in a fuel cell or hydrogen fuel vehicle.

 

     (q) (s) "Leak" means liquid or vapor loss from the gasoline

 

dispensing system or stage I vapor-recovery system as determined by

 

visual inspection or functional testing.

 

     (r) (t) "Modification" means any change, removal, or addition,

 

other than an identical replacement, of any component contained

 

within a stage I vapor-recovery system. The resultant modification

 

must constitute an approved vapor-recovery system.

 

     (s) (u) "Motor octane number" or "MON" means a knock

 

characteristic of gasoline determined by use of standard procedures

 

on a motor engine.

 

     (t) (v) "Operator" means a person who owns, leases, operates,

 

manages, supervises, or controls, directly or indirectly, a

 

gasoline-dispensing facility.

 

     (u) (w) "Oxygenate" means an oxygen-containing, ashless,

 

organic compound, such as alcohol or ether, that may be used as

 

fuel or fuel supplement.

 

     (v) (x) "Person" means an individual, sole proprietorship,

 

partnership, corporation, association, or other legal entity.

 

     (w) "Psi" means pounds per square inch.

 

     (x) (y) "Refiner" means a person who owns, leases, operates,

 

controls, or supervises a refinery.

 

     (y) (z) "Refinery" means a plant at which gasoline is

 

produced.

 

     (z) (aa) "Research octane number" or "RON" means a knock

 

characteristic of gasoline determined by use of standard procedures

 


on a research engine.

 

     (aa) (bb) "Retail dealer" means a person who owns, leases,

 

operates, controls, or supervises a retail outlet.

 

     (bb) (cc) "Retail outlet" means an establishment at which

 

motor fuel is sold or offered for sale to the public.

 

     (cc) (dd) "Rule" means a rule promulgated pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (dd) (ee) "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.

 

     (ee) "Vapor pressure" means the vapor pressure of gasoline or

 

gasoline oxygenate blend as determined by ASTM test method D6378 or

 

D5191 or another ASTM method approved by the department.

 

     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. Gasoline, ethanol

 

fuel, fuels containing ethanol, diesel fuel, biodiesel, and

 

biodiesel blends sold or offered for sale in this state shall meet

 

the following standards:

 

     (a) ASTM D4814-11b, "standard specification for automotive

 

spark-ignition engine fuel".

 

     (b) ASTM D5798-11, "standard specification for ethanol fuel

 

blends for flexible-fuel automotive spark-ignition engines".

 

     (c) ASTM D6751-11b, "standard specification for biodiesel fuel

 


blend stock (B100) for middle distillate fuels".

 

     (d) ASTM D975-11b, "standard specification for diesel fuel

 

oils".

 

     (e) ASTM D7467-10 "standard specification for diesel fuel oil,

 

biodiesel blend (B6 to B20)".

 

     (2) The director shall establish standards for the amount and

 

type of additives allowed to be included in gasoline and diesel

 

fuel. However, when gasoline is blended with ethanol, both of the

 

following apply:

 

     (a) The ethanol shall meet the standards of ASTM D4806-11a,

 

"standard specification for denatured fuel ethanol for blending

 

with gasoline for use as automotive spark-ignition engine fuel".

 

     (b) The blend shall meet the standards of ASTM D4814-11b,

 

except that the maximum vapor pressure may exceed the ASTM D4814-

 

11b limits by not more than the following:

 

     (i) For blends containing 9% to 10% ethanol by volume, 1.0 psi,

 

from June 1 through September 15.

 

     (ii) For blends containing 1% or more ethanol by volume, for

 

volatility classes A, B, C, and D, 1.0 psi, from September 16

 

through May 31.

 

     (iii) For blends containing 1% or more ethanol by volume, for

 

volatility class E, 0.5 psi, from September 16 through May 31.

 

     (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 87.0 AKI and a minimum 82 82.0

 

MON, midgrade 88 with a minimum 88 88.0 AKI and a minimum 82 82.0

 

MON, midgrade 89 with a minimum 89 89.0 AKI and a minimum 83 83.0

 


MON, premium with a minimum 90 90.0 AKI, premium 91 with a minimum

 

91 91.0 AKI, premium 92 with a minimum 92 92.0 AKI, premium 93 with

 

a minimum 93 93.0 AKI, and premium 94 with a minimum 94 94.0 AKI.

 

     (4) The director shall establish standards for vapor pressure

 

as specified by the American society for testing and materials,

 

ASTM, except as otherwise required to conform to federal or state

 

law. Notwithstanding anything to the contrary in section 10d, the

 

director shall establish the vapor pressure as 9.0 pounds per

 

square inch (psi) psi for retail outlets during the period

 

beginning June 1 through September 15 of each year, except for

 

dispensing facilities in counties where the director establishes

 

the vapor pressure as 7.0 psi or 7.8 psi in the year 2007 and

 

thereafter. As used in this act, "vapor pressure" means the vapor

 

pressure of gasoline or gasoline oxygenate blend as determined by

 

ASTM test method D6378 or D5191 or an ASTM method approved by the

 

department.

 

     (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 ASTM 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)

 

of part A of title II of the clean air act, 42 USC 7545, and or the

 

ethanol waiver of 1.0 psi in section 211(h)(4) of part A of title

 

II of the clean air act, 42 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 The use of the additive

 

methyl tertiary butyl ether (MTBE) is prohibited in this state.

 

     (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. No later than June 1, 2009, the director

 

shall make available for public comment proposed standards to

 

ensure the purity and quality of diesel fuel that is biodiesel or a

 

biodiesel blend, including, but not limited to, a biodiesel blend

 

designated as B20.

 

     (6) (7) Any firm offering hydrogen fuel for sale in this state

 

shall first register with and obtain approval from the department.

 

Registration shall include a complete list of the fuel

 

specifications the product is to meet and the sites where the

 

product is offered for sale to the general public.

 

     (7) (8) Standards established pursuant to by the director

 

under this section shall be established by rules promulgated

 

pursuant to the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328.

 

     Sec. 4a. (1) A motor fuel storage tank at a retail outlet

 

shall be periodically tested by the retail dealer to insure ensure

 

that the tank does not have water or water-alcohol at the bottom of

 

that tank in an amount greater than 2 inches. 1/2 inch. If there is

 

more than 2 inches 1/2 inch of water or water-alcohol at the bottom

 

of the storage tank, gasoline, diesel fuel, biodiesel, or biodiesel

 

blend motor fuel shall not be sold to a consumer from that tank

 

until the water or water-alcohol level is reduced to a level of

 


less than 2 inches.1/2 inch.

 

     (2) Adequate testing supplies, as determined by the

 

department, shall be maintained at the retail outlet and shall also

 

be made A retail outlet shall maintain on the premises and make

 

available to the department to determine adequate testing supplies,

 

as determined by the department, for ascertaining the water or

 

water-alcohol level in the a motor fuel storage tank.