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.