SB522 (2008) Detail

(New Title) relative to licensing requirements for small quantity biodiesel producers and distributors and prohibiting the sale or delivery of biodiesel not meeting the state ASTM standard.


CHAPTER 381

SB 522-FN – FINAL VERSION

03/06/08 0762s

16Apr2008… 1308h

15May2008… 1543h

06/04/08 1977CofC

2008 SESSION

08-2884

08/03

SENATE BILL 522-FN

AN ACT relative to licensing requirements for small quantity biodiesel producers and distributors and prohibiting the sale or delivery of biodiesel not meeting the state ASTM standard.

SPONSORS: Sen. Janeway, Dist 7; Sen. Barnes, Dist 17; Rep. Borden, Rock 18

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill:

I. Requires certain distributors of biodiesel to be licensed by the department of safety.

II. Prohibits the sale or delivery of biodiesel not meeting the ASTM standard within the state.

III. Requires biodiesel distributors to keep certain records.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/06/08 0762s

16Apr2008… 1308h

15May2008… 1543h

06/04/08 1977CofC

08-2884

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to licensing requirements for small quantity biodiesel producers and distributors and prohibiting the sale or delivery of biodiesel not meeting the state ASTM standard.

Be it Enacted by the Senate and House of Representatives in General Court convened:

381:1 New Section; Biodiesel Distributor License. Amend RSA 260 by inserting after section 36-c the following new section:

260:36-d Biodiesel Distributor License.

I. Any person who refines, distills, prepares, blends, manufactures, or purchases biodiesel on which the road toll has not been paid and who is not a licensed and bonded distributor in accordance with RSA 260:36, shall become licensed with the department.

II. Any licensee that refines, distills, prepares, blends, manufactures, or purchases more than 10,000 gallons of biodiesel in a monthly period shall be required to file with the department a bond in accordance with RSA 260:37.

III. For all non-bonded licensees an annual fee for the license shall be $25.

IV. Each biodiesel distributor licensee shall file a monthly return with the department in accordance with RSA 260:38, I.

V. The license shall be unassignable and shall remain in full force and effect on a fiscal year basis from July 1 through June 30 unless cancelled, suspended, or revoked. The license shall be renewable upon completion of an application renewal form, provided that the distributor is in good standing with the division. The department shall furnish each licensee, monthly, a list of current licenses issued under this section.

VI. Any person who shall use any biodiesel or biodiesel blend, upon which the road toll has been paid to the state of New Hampshire, shall be entitled to a refund to the extent of the amount paid, if the biodiesel or biodiesel blend was used in any other way than generating power in an internal combustion engine while traveling on the ways, except that no refunds on biodiesel or biodiesel blends shall be paid on biodiesel or biodiesel blends used while idling a registered motor vehicle. All refunds shall be subject to the same conditions as set forth in RSA 260:47.

381:2 New Section; Biodiesel; Definition. Amend RSA 259 by inserting after section 6 the following new sections:

259:6-a Biodiesel. “Biodiesel” means a renewable special fuel that is composed of mono-alkyl esters of long chain fatty acids, is derived from vegetable oils or animal fats, and meets the American Society for Testing and Materials (ASTM) specifications D6751.

381:3 New Section; Sub-Standard Biodiesel. Amend RSA 260 by inserting after section 52-e the following new section:

260:52-f Biodiesel Not Meeting ASTM Fuel Quality Standards Not to be Sold in the State.

I. A person shall not sell or deliver biodiesel or biodiesel blend in this state that does not meet the ASTM standard as defined in RSA 259:6-a.

II. A person who violates paragraph I of this section commits a violation and shall, upon conviction, be sentenced to pay a fine of not less than $100 nor more than $500.

III. In addition to any fine provided in paragraph II, a person who violates paragraph I shall be assessed a penalty of $1,000 or $10 per gallon of biodiesel or biodiesel blends involved in the sale or delivery, whichever is greater.

IV. Upon conviction, a person who violates paragraph I of this section shall be ordered by the court to pay the costs associated with testing to determine ASTM standard as defined by RSA 259:6-a.

V. Any person authorized by the department may enter any place where fuels are produced or stored, and may physically inspect any tank, reservoir, or other container that can be used for the production, storage, or transportation of biodiesel or biodiesel blends. Inspection may also be made of any equipment used for or in connection with the production, storage, or transportation of biodiesel or biodiesel blends. A person authorized by the department may detain a vehicle, vessel, or railroad tank car placed on a customer's siding for use or storage for the purpose of inspecting fuel tanks or fuel storage tanks as necessary to determine the amount and composition of the fuel. A person authorized by the department may take and remove samples of biodiesel, either pure or blended with petroleum diesel, in reasonable quantities necessary to determine the composition of the fuel.

VI. A person who refuses to allow an inspection authorized by this section commits a violation and shall, upon conviction, be sentenced to pay a fine of $1,000 for each refusal.

381:4 New Section; Biodiesel; Recordkeeping for Distributors. Amend RSA 260 by inserting after section 43-a, the following new section:

260:43-b Additional Recordkeeping Requirements for Biodiesel Distributors. In addition to the retention of records pursuant to RSA 260:43, biodiesel distributors shall maintain and keep for a period of 4 years records sufficient to demonstrate that all biodiesel sold within the state meets the applicable ASTM fuel quality standard for biodiesel, D6751. Failure to maintain appropriate records or failure to demonstrate compliance with the applicable ASTM standard may result in loss of license issued pursuant to RSA 260:36 and RSA 260:36-d.

381:5 Effective Date. This act shall take effect January 1, 2009.

Approved: July 11, 2008

Effective Date: January 1, 2009