1.1    .................... moves to amend H. F. No. 2987 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 239.77, as amended by Laws 2007,
1.4chapter 62, sections 3 and 4, is amended to read:
1.5239.77 BIODIESEL CONTENT MANDATE.
1.6    Subdivision 1. Biodiesel fuel. "Biodiesel fuel" means a renewable, biodegradable,
1.7mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or
1.8animal fats; and that meets American Society For Testing and Materials specification
1.9D6751-07 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels; and is manufactured
1.10by a person certified by the BQ-9000 National Biodiesel Accreditation Program.
1.11    Subd. 2. Minimum content. (a) Except as otherwise provided in this section, all
1.12diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines
1.13must contain at least 2.0 percent the stated percentage of biodiesel fuel oil by volume
1.14on and after the following dates.

1.15	(1)	September 29, 2005	2 percent
1.16	(2)	May 1, 2009	5 percent
1.17	(3)	May 1, 2011	10 percent
1.18	(4)	May 1, 2013	15 percent
1.19	(5)	May 1, 2015	20 percent

1.20    The minimum content in clause (5) is effective during the months of May, June,
1.21July, August, and September only. The minimum content for the remainder of the year
1.22is 15 percent.
1.23    (b) The minimum content levels in paragraph (a), clauses (3), (4) and (5) become
1.24effective on the date specified only if the commissioners of agriculture, commerce, and
1.25pollution control publish notice in the State Register, at least 270 days prior to the date of
2.1each scheduled increase, that all of the following conditions have been met and the state is
2.2prepared to move to the next scheduled minimum content level:
2.3    (1) an American Society for Testing and Materials specification or equivalent federal
2.4standard exists for the next minimum diesel-biodiesel blend;
2.5    (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.6in this state is equal to at least 50 percent of anticipated demand at the next minimum
2.7content level; and
2.8    (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.9promote biodiesel quality and avoid any potential economic disruption.
2.10    (c) The commissioners of agriculture, commerce, and pollution control must consult
2.11with the biodiesel task force when assessing and certifying conditions in paragraph (b)
2.12and in general must seek the guidance of the biodiesel task force regarding biodiesel
2.13labeling, enforcement, and other related issues.
2.14    Subd. 3. Exceptions. (a) The minimum content requirement requirements of
2.15subdivision 2 does do not apply to fuel used in the following equipment:
2.16    (1) motors located at an electric generating plant regulated by the Nuclear
2.17Regulatory Commission;
2.18    (2) railroad locomotives; and
2.19    (3) off-road taconite and copper mining equipment and machinery.
2.20    (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
2.21Regulatory Commission has approved the use of biodiesel fuel in motors at electric
2.22generating plants under its regulation.
2.23    Subd. 4. Disclosure. A refinery or terminal shall provide, at the time diesel fuel
2.24is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
2.25to the person who receives the fuel. For biodiesel-blended products, the bill of lading or
2.26shipping manifest must disclose biodiesel content, stating volume percentage, gallons of
2.27biodiesel per gallons of petroleum diesel base-stock, or an ASTM "Bxx" designation
2.28where "xx" denotes the volume percent biodiesel included in the blended product. This
2.29subdivision does not apply to sales or transfers of biodiesel blend stock between refineries,
2.30between terminals, or between a refinery and a terminal.

2.31    Sec. 2. Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 8a, is
2.32amended to read:
2.33    Subd. 8a. Biodiesel fuel. "Biodiesel fuel" means a renewable, biodegradable, mono
2.34alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats
2.35and that meets American Society for Testing and Materials specification D6751-07 for
3.1Biodiesel Fuel (B100) Blend Stock for Distillate Fuels has the meaning given in section
3.2239.77, subdivision 1.

3.3    Sec. 3. PROPOSAL; PETROLEUM INSPECTION FEE REVENUE.
3.4    The commissioners of finance, commerce, and pollution control must develop and
3.5submit to the legislature as part of their next biennial budget request a proposal for
3.6eliminating, to the extent feasible, redundant fuel inspections and dedicating all revenue
3.7from the petroleum inspection fee levied on petroleum products under Minnesota Statutes,
3.8section 239.101, subdivision 3, to the Weights and Measures Division of the Department
3.9of Commerce.

3.10    Sec. 4. APPROPRIATION.
3.11    $....... is appropriated in fiscal year 2009 from the general fund to the commissioner
3.12of agriculture. $...... is for infrastructure grants to fuel terminals that serve Minnesota
3.13for cold-weather biodiesel blending. $...... is for educational activities focused on the
3.14handling, distribution, and use of biodiesel."