HB 1068 -- Renewable Fuels

Sponsor:  Hobbs

This bill changes the laws regarding renewable fuels.  In its
main provisions, the bill:

(1)  Requires the Department of Agriculture to issue a
determination upon finding that the price of biodiesel or
biodiesel-blended fuel has on average been equal to or less than
conventional diesel fuel for one year.  Beginning June 1, 2011,
or 120 days after the department's price determination, whichever
is the later, all diesel fuel sold at retail in Missouri must be
a biodiesel-blended fuel.  Beginning May 1, 2011, or 90 days
after the department's price determination, whichever is later,
fuel terminals in Missouri that sell diesel fuel must sell
biodiesel, conventional diesel, and biodiesel-blended fuel that
contains 5% biodiesel by volume;

(2)  Allows a terminal to sell biodiesel-blended fuel that
contains more than 5% biodiesel by volume if notification
requirements comply with the department's rules;

(3)  Allows distributors to purchase unblended gasoline at a
terminal and blend it with ethanol to comply with the fuel
ethanol content requirements;

(4)  Exempts distributors and retailers from the biodiesel-blend
fuel content requirement if the cost of biodiesel-blended fuel is
more expensive than conventional diesel fuel.  Distributors may
blend diesel fuel with biodiesel to make 5% biodiesel-blended
fuel;

(5)  Requires position holders, suppliers, distributors, and
retailers to provide certain sales and price information to the
departments of Agriculture and Revenue upon request and requires
the departments to keep all sales and price information
confidential and not disclosed except by court order or as
otherwise provided by law;

(6)  Exempts diesel fuel sold to or used by railroad on-track
equipment and diesel fuel sold to or used by motors located at an
electric generation plant regulated by the federal Nuclear
Regulatory Commission from the content requirement as well as
additional uses that the Director of the Department of
Agriculture may exempt;

(7)  Allows the Governor, by executive order, to waive the fuel
ethanol or biodiesel-blended fuel requirements for any reason;

(8)  Requires biodiesel producers to meet the requirements of an
accredited producer in the BQ-9000 Program of the National
Biodiesel Accreditation Commission.  Producers not meeting this
standard may be subject to a penalty of up to $10,000 per
violation and may be subject to a cease and desist order;

(9)  Requires the department to develop standards for cold
temperature operability properties of biodiesel and authorizes
the department to enforce these standards beginning January 1,
2011; and

(10)  Allows the department to annually contract with the Food
and Agricultural Policy Research Institute at the University of
Missouri to study the effect of biodiesel and fuel ethanol
production on the prices of fuel and food.  The results must be
annually submitted by the department director to the General
Assembly by January 15.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am