Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0120.01 Karen Epps SENATE BILL 06-138 SENATE SPONSORSHIP Shaffer, Entz, Fitz-Gerald, and Kester HOUSE SPONSORSHIP Gardner, Gallegos, Hodge, and Rose Senate Committees House Committees Agriculture, Natural Resources & Energy A BILL FOR AN ACT Concerning the requirement that gasoline contain at least a specified percentage of ethanol by volume. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Rural Economic Development Issues. Requires that all gasoline sold in Colorado contain at least:  5% denatured ethanol by volume as of January 1, 2007;  10% denatured ethanol by volume as of January 1, 2009; and  If allowed pursuant to federal law and federal guidelines, and if doing so would not void any automobile manufacturer's warranty:  15% denatured ethanol by volume as of January 1, 2011, or at such time after January 1, 2011, as the division of oil and public safety certifies that the criteria in the act have been met; and  20% denatured ethanol by volume as of January 1, 2013, or at such time after January 1, 2013, as the division of oil and public safety certifies that the criteria in the act have been met. Requires a refinery or terminal to provide a bill of lading or shipping manifest that includes the identity and the volume percentage or gallons of oxygenate included in the gasoline. Allows for the sale of nonoxygenated gasoline under the following circumstances:  At an airport, marina, mooring facility, or resort for use in aircraft if the gasoline is unleaded premium;  At a public or private racecourse if the gasoline is intended to be used exclusively as a fuel for off-highway motor sports racing events;  At retail gasoline stations for use in collector vehicles, off-road vehicles, motorcycles, boats, snowmobiles, or small engines; and  Directly to bulk fuel storage tanks for use in collector vehicles, off-road vehicles, motorcycles, boats, snowmobiles, small engines, or airplanes. Requires the executive director of the department of personnel to establish a policy by January 1, 2007, requiring all state-owned vehicles and equipment to use a fuel blend of ethanol and gasoline if the price is no greater than 10› more per gallon than the price of gasoline, and to provide for proper administration, implementation, and enforcement of the policy. Requires the executive director of the department of personnel to purchase flexible-fuel vehicles whenever possible. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 8-20-201, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 8-20-201. Definitions. As used in this part 2, unless the context otherwise requires: (8.5) "Small engine" means an internal combustion engine with a total displacement of fifty cubic centimeters or less. SECTION 2. Part 2 of article 20 of title 8, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 8-20-236. Minimum ethanol content required. (1) (a) Except as otherwise provided in subsections (3) to (6) of this section: (I) Effective January 1, 2007, all gasoline sold or offered for sale in Colorado shall contain at least five percent denatured ethanol by volume. (II) Effective January 1, 2009, all gasoline sold or offered for sale in Colorado shall contain at least ten percent denatured ethanol by volume. (III) If allowed by federal law and federal guidelines, and if doing so would not void any automobile manufacturer's warranty: (A) Effective January 1, 2011, or at such time after January 1, 2011, as the division of oil and public safety certifies that the criteria in this subparagraph (III) have been met, all gasoline sold or offered for sale in Colorado shall contain at least fifteen percent denatured ethanol by volume. (B) Effective January 1, 2013, or at such time after January 1, 2011, as the division of oil and public safety certifies that the criteria in this subparagraph (III) have been met, all gasoline sold or offered for sale in Colorado shall contain at least twenty percent denatured ethanol by volume. (b) A gasoline and ethanol blend shall be deemed to comply with the minimum ethanol requirements of paragraph (a) of this subsection (1) if the ethanol content, exclusive of denaturants and permitted contaminants, is within eight-tenths percent by volume of the specified blend as determined by an appropriate United States environmental protection agency or ASTM international standard method of analysis of alcohol and ether content in motor fuels. (2) (a) A refinery or terminal shall provide, at the time gasoline is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest to the person who receives the gasoline. (b) For oxygenated gasoline, the bill of lading or shipping manifest shall include the identity and the volume percentage or gallons of oxygenate included in the gasoline. In addition, the bill of lading or shipping manifest shall contain the following statement, conspicuously displayed in at least ten-point, bold-faced type: "This fuel contains an oxygenate. Do not blend this fuel with ethanol or with any other oxygenate." (c) For nonoxygenated gasoline sold or transferred after December 31, 2006, the bill of lading or shipping manifest shall contain the following statement, conspicuously displayed in at least ten-point, bold-faced type: "This fuel is not oxygenated. It must not be sold at retail in Colorado." (d) This subsection (2) shall not apply to sales or transfers of gasoline between refineries, between terminals, or between a refinery and a terminal. (3) A person may offer for sale, sell, or dispense at an airport, marina, mooring facility, or resort, for use in aircraft or for purposes listed under subsection (5) of this section, gasoline that is not oxygenated in accordance with subsection (1) of this section if the gasoline is unleaded premium grade. (4) A person may offer for sale, sell, or dispense at a public or private racecourse gasoline that is not oxygenated in accordance with subsection (1) of this section if the gasoline is intended to be used exclusively as a fuel for off-highway motor sports racing events. (5) (a) A person may offer for sale, sell, or dispense at a retail gasoline station, for use in collector vehicles or vehicles eligible to be licensed as collector vehicles, off-road vehicles, motorcycles, boats, snowmobiles, or small engines, gasoline that is not oxygenated in accordance with subsection (1) of this section if the person meets all of the conditions stated in paragraphs (b) and (c) of this subsection (5). (b) The nonoxygenated gasoline shall be unleaded premium grade. (c) The pump stands shall be posted with a permanent notice stating the following: "Nonoxygenated gasoline is for use in collector vehicles or vehicles eligible to be licensed as collector vehicles, off-road vehicles, motorcycles, boats, snowmobiles, or small engines only." The notice shall be posted at least three feet above the ground. A retail gasoline station that sells nonoxygenated premium gasoline shall register every two years with the director of the division of oil and public safety and shall file, on forms approved by the director, the total amount of nonoxygenated premium gasoline sold annually. (6) (a) A person may offer for sale, sell, and deliver directly to a bulk fuel storage tank gasoline that is not oxygenated in accordance with subsection (1) of this section if all of the conditions stated in paragraphs (b) to (e) of this subsection (6) are met. (b) The nonoxygenated gasoline shall be unleaded premium grade. (c) The bulk fuel storage tank shall be stationary or permanently installed. (d) The bulk fuel storage tank shall be under the control of an owner of the real property and located on that real property. (e) The nonoxygenated gasoline shall be purchased for use only in vehicles listed in paragraph (a) of subsection (5) of this section. (7) A person may offer for sale, sell, and deliver directly to a bulk fuel storage tank gasoline that is not oxygenated in accordance with subsection (1) of this section for use in aircraft if the nonoxygenated gasoline is unleaded premium grade. (8) A person who offers for sale, sells, or dispenses nonoxygenated premium gasoline under one or more of the exemptions in subsections (5) to (7) of this section and this subsection (8) may sell, offer for sale, or dispense oxygenated gasoline that contains less than the minimum amount of ethanol required under subsection (1) of this section only if all of the following conditions are met: (a) The blended gasoline has an octane rating of eighty-seven or greater. (b) The gasoline is a blend of oxygenated gasoline meeting the requirements of subsection (1) of this section with nonoxygenated premium gasoline. (c) The blended gasoline contains not more than ten percent nonoxygenated premium gasoline. (d) The blending of oxygenated gasoline with nonoxygenated gasoline occurs within the gasoline dispenser. (e) The gasoline station at which the gasoline is sold, offered for sale, or delivered is equipped to store gasoline in not more than two storage tanks. (f) The person met the applicable conditions stated in subsections (1) to (5) of this section on January 1, 2007, and has registered with the director of the division of oil and public safety on or before April 1, 2007. SECTION 3. The introductory portion to 24-30-1104 (2) and 24-30-1104 (2) (c) (III), Colorado Revised Statutes, are amended, and the said 24-30-1104 (2) (c) is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBPARAGRAPHS, to read: 24-30-1104. Central services functions of the department. (2) In addition to the county-specific functions set forth in subsection (1) of this section, the department of personnel shall take such steps as are necessary to fully implement a central state motor vehicle fleet system by January 1, 1993. The provisions of the motor vehicle fleet system created pursuant to this subsection (2) shall apply to the executive branch of the state of Colorado, its departments, its institutions, and its agencies; except that the governing board of each institution of higher education, by formal action of the board, and the Colorado commission on higher education, by formal action of the commission, may elect to be exempt from the provisions of this subsection (2) and may obtain a motor vehicle fleet system independent of the state motor vehicle fleet system. Under the direction of the executive director, the department of personnel shall perform the following functions pertaining to the motor vehicle fleet system throughout the state: (c) (II.5) The executive director shall adopt a policy that, whenever possible, the state shall purchase flexible-fuel vehicles. (III) For purposes of this paragraph (c): (A) "Alternative fuel" has the meaning established in section 25-7-106.8, C.R.S. (B) "Bi-fueled vehicle" means a motor vehicle, which may be purchased to comply with applicable federal requirements including, but not limited to, the federal "Energy Policy Act of 1992", 42 U.S.C. sec. 13257, and 42 U.S.C. sec. 7587, that can operate on both an alternative fuel and a traditional fuel or that can operate alternately on a traditional fuel and an alternative fuel. (C) "E85 fuel" means a motor fuel blend of eighty-five percent ethanol and fifteen percent gasoline. (D) "Flexible-fuel vehicle" means a vehicle that can operate on both E85 fuel and gasoline or that can operate alternately on E85 fuel and gasoline. The terms "flexible-fuel vehicle" and "bi-fueled vehicle" are not mutually exclusive. (IV) By January 1, 2007, the executive director shall adopt a policy that all state-owned vehicles and equipment shall be fueled with a fuel blend of ethanol and gasoline pursuant to section 8-20-236, C.R.S., if the price is no greater than ten cents more per gallon than the price of gasoline. The executive director shall provide for the proper administration, implementation, and enforcement of the policy. SECTION 4. Effective date. This act shall take effect January 1, 2007. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.