Florida Senate - 2011                             CS for SB 1284
       
       
       
       By the Committee on Agriculture; and Senator Bennett
       
       
       
       
       575-02799-11                                          20111284c1
    1                        A bill to be entitled                      
    2         An act relating to biodiesel; amending s. 206.01,
    3         F.S.; defining the term “renewable feedstocks”;
    4         amending s. 206.02, F.S.; exempting certain biodiesel
    5         manufacturers from bonding requirements; amending s.
    6         206.874, F.S.; exempting certain biodiesel
    7         manufacturers from specific taxes on diesel fuel;
    8         amending s. 206.9925, F.S.; redefining the term
    9         “pollutants” to exclude certain biodiesel; amending s.
   10         526.202, F.S.; providing legislative findings
   11         regarding the sale of diesel containing biodiesel;
   12         amending s. 526.203, F.S.; defining the terms
   13         “biodiesel” and “diesel fuel”; establishing standards
   14         for the amount of biodiesel that must be contained in
   15         diesel fuel; requiring dealers and wholesalers to
   16         provide certified fuel analyses upon the department’s
   17         request; providing an exemption from regulation;
   18         requiring reports to the Department of Revenue;
   19         amending s. 526.205, F.S.; providing for certain
   20         persons to apply for extensions to comply with the
   21         requirements of the act; providing an effective date.
   22  
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Subsection (31) is added to section 206.01,
   26  Florida Statutes, to read:
   27         206.01 Definitions.—As used in this chapter:
   28         (31) Renewable feedstocks” mean crops and animal products
   29  that may be used to produce fuel or energy.
   30         Section 2. Subsection (5) of section 206.02, Florida
   31  Statutes, is amended to read:
   32         206.02 Application for license; temporary license; terminal
   33  suppliers, importers, exporters, blenders, biodiesel
   34  manufacturers, and wholesalers.—
   35         (5) Each biodiesel manufacturer that processes at least 50
   36  percent of its annual B100 biodiesel production from renewable
   37  feedstocks originating in this state must meet the reporting,
   38  bonding, and licensing requirements prescribed for wholesalers
   39  by this chapter. All other biodiesel manufacturers must comply
   40  with the reporting, bonding, and licensing requirements for
   41  wholesalers in this chapter.
   42         Section 3. Subsection (7) of section 206.874, Florida
   43  Statutes, is amended to read:
   44         206.874 Exemptions.—
   45         (7) Biodiesel fuel manufactured by a public or private
   46  secondary school that produces less than 1,000 gallons annually
   47  for the sole use at the school, by its employees, or its
   48  students, or biodiesel fuel manufactured by a biodiesel
   49  manufacturer that produces at least 50 percent of its annual
   50  B100 biodiesel from renewable feedstocks originating in this
   51  state, is exempt from the tax imposed by this part. A public or
   52  private secondary school that produces less than 1,000 gallons a
   53  year of biodiesel is exempt from the registration requirements
   54  of this chapter.
   55         Section 4. Subsection (5) of section 206.9925, Florida
   56  Statutes, is amended to read:
   57         206.9925 Definitions.—As used in this part:
   58         (5) “Pollutants” includes any petroleum product as defined
   59  in subsection (4) as well as pesticides, ammonia, and chlorine;
   60  lead-acid batteries, including, but not limited to, batteries
   61  that are a component part of other tangible personal property;
   62  and solvents as defined in subsection (6), but the term excludes
   63  liquefied petroleum gas, medicinal oils, and waxes. Products
   64  intended for application to the human body or for use in human
   65  personal hygiene or for human ingestion are not pollutants,
   66  regardless of their contents. B100 or B99 biodiesel manufactured
   67  in this state is not a pollutant if at least 50 percent of the
   68  manufacturer’s annual production is from renewable feedstocks
   69  originating in this state. For the purpose of the tax imposed
   70  under s. 206.9935(1), “pollutants” also includes crude oil.
   71         Section 5. Section 526.202, Florida Statutes, is amended to
   72  read:
   73         526.202 Legislative findings.—The Legislature finds it is
   74  vital to the public interest and to the state’s economy to
   75  establish a market and the necessary infrastructure for
   76  renewable fuels in this state by requiring that all gasoline
   77  offered for sale in this state include a percentage of
   78  agriculturally derived, denatured ethanol and that all diesel
   79  offered for sale in this state include a specified percentage of
   80  biodiesel. The Legislature further finds that the use of
   81  renewable fuel reduces greenhouse gas emissions and dependence
   82  on imports of foreign oil, improves the health and quality of
   83  life for Floridians, and stimulates economic development and the
   84  creation of a sustainable industry that combines agricultural
   85  production with state-of-the-art technology.
   86         Section 6. Section 526.203, Florida Statutes, is amended to
   87  read:
   88         526.203 Renewable fuel standard.—
   89         (1) DEFINITIONS.—As used in this act:
   90         (a) “Biodiesel” has the same meaning as provided in s.
   91  212.08(7)(ccc).
   92         (b)(a) “Blender,” “importer,” “terminal supplier,” and
   93  “wholesaler” are defined as provided in s. 206.01.
   94         (c)(b) “Blended gasoline” means a mixture of 90 to 91
   95  percent gasoline and 9 to 10 percent fuel ethanol, by volume,
   96  that meets the specifications as adopted by the department. The
   97  fuel ethanol portion may be derived from any agricultural
   98  source.
   99         (d) “Diesel fuel” has the same meaning as provided in s.
  100  206.86.
  101         (e)(c) “Fuel ethanol” means an anhydrous denatured alcohol
  102  produced by the conversion of carbohydrates that meets the
  103  specifications as adopted by the department.
  104         (f)(d) “Unblended gasoline” means gasoline that has not
  105  been blended with fuel ethanol and that meets the specifications
  106  as adopted by the department.
  107         (2) FUEL STANDARD.—Beginning December 31, 2010,
  108         (a) All gasoline sold or offered for sale in Florida by a
  109  terminal supplier, importer, blender, or wholesaler shall be
  110  blended gasoline.
  111         (b)1. Beginning December 31, 2011, all diesel fuel sold by
  112  dealers or wholesalers in this state must contain at least 2
  113  percent biodiesel.
  114         2. However, when the annualized biodiesel production
  115  capacity of production facilities in this state reaches 233
  116  million gallons, which is approximately 8 percent of the annual
  117  diesel consumption in the state, the Department of Agriculture
  118  and Consumer Services shall notify all dealers and wholesalers
  119  that the annual biodiesel capacity has reached a minimum level
  120  and that they must begin selling diesel fuel that contains a
  121  minimum of 5 percent biodiesel no later than 2 months after the
  122  date of such notice.
  123         (c) Dealers and wholesalers, upon the request of the
  124  department, shall provide a certificate of analysis of any
  125  biodiesel received.
  126         (3) EXEMPTIONS.—The requirements of this act do not apply
  127  to the following:
  128         (a) Fuel used in aircraft.
  129         (b) Fuel sold for use in gasoline-powered boats and similar
  130  watercraft.
  131         (c) Fuel sold to a blender.
  132         (d) Fuel sold for use in collector vehicles or vehicles
  133  eligible to be licensed as collector vehicles, off-road
  134  vehicles, motorcycles, or small engines.
  135         (e) Fuel unable to comply due to requirements of the United
  136  States Environmental Protection Agency.
  137         (f) Fuel transferred between terminals.
  138         (g) Fuel exported from the state in accordance with s.
  139  206.052.
  140         (h) Fuel qualifying for any exemption in accordance with
  141  chapter 206.
  142         (i) Fuel for a railroad locomotive.
  143         (j) Fuel for equipment, including vehicle or vessel,
  144  covered by a warranty that would be voided, if explicitly stated
  145  in writing by the vehicle or vessel manufacturer, if the
  146  equipment were to be operated using fuel meeting the
  147  requirements of subsection (2).
  148  
  149  All records of sale of unblended gasoline shall include the
  150  following statement: “Unblended gasoline may be sold only for
  151  the purposes authorized under s. 526.203(3), F.S.”
  152         (4) REPORT.—Pursuant to s. 206.43, each terminal supplier,
  153  importer, blender, and wholesaler shall include in its report to
  154  the Department of Revenue the number of gallons of blended and
  155  unblended gasoline, diesel, and biodiesel sold. The Department
  156  of Revenue shall provide a monthly summary report to the
  157  department.
  158         Section 7. Section 526.205, Florida Statutes, is amended to
  159  read:
  160         526.205 Enforcement; extensions.—
  161         (1) Unless a waiver or suspension pursuant to s. 526.204
  162  applies, or an extension has been granted pursuant to subsection
  163  (3), it shall be unlawful for a terminal supplier, importer,
  164  blender, or wholesaler to sell or distribute, or offer for sale
  165  or distribution, any gasoline or diesel which fails to meet the
  166  requirements of this act.
  167         (2) Upon a determination by the department of a violation
  168  of this act, the department shall enter an order imposing one or
  169  more of the following penalties:
  170         (a) Issuance of a warning letter.
  171         (b) Imposition of an administrative fine of not more than
  172  $1,000 per violation for a first-time offender. For a second
  173  time or repeat offender, or any person who is shown to have
  174  willfully and intentionally violated any provision of this act,
  175  the administrative fine shall not exceed $5,000 per violation.
  176  When imposing any fine under this section, the department shall
  177  consider the monetary benefit to the violator as a result of
  178  noncompliance, whether the violation was committed willfully,
  179  and the compliance record of the violator. All funds recovered
  180  by the department shall be deposited into the General Inspection
  181  Trust Fund.
  182         (3) Any terminal supplier, importer, blender, or wholesaler
  183  may apply to the department by September 30, 2011 2010, for an
  184  extension of time to comply with the requirements of this act
  185  relating to biodiesel. The application for an extension must
  186  demonstrate that the applicant has made a good faith effort to
  187  comply with the requirements but has been unable to do so for
  188  reasons beyond the applicant’s control, such as delays in
  189  receiving governmental permits. The department shall review each
  190  application and make a determination as to whether the failure
  191  to comply was beyond the control of the applicant. If the
  192  department determines that the applicant made a good faith
  193  effort to comply, but was unable to do so for reasons beyond the
  194  applicant’s control, the department shall grant an extension of
  195  time determined necessary for the applicant to comply.
  196         Section 8. This act shall take effect July 1, 2011.