2015 -- S 0919

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LC002534

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO HEALTH AND SAFETY -- BIODIESEL HEATING OIL ACT OF 2013

     Introduced By: Senator V. Susan Sosnowski

     Date Introduced: May 14, 2015

     Referred To: Senate Environment & Agriculture

     (Environmental Management)

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 23-23.7-3, 23-23.7-4, 23-23.7-5, 23-23.7-6 and 23-23.7-7 of the

General Laws in Chapter 23-23.7 entitled "Biodiesel Heating Oil Act of 2013" are hereby

amended to read as follows:

     23-23.7-3. Definitions. -- As used in this chapter, the following words shall have the

following meanings:

      (1) The term "ASTM" means American Society for Testing and Materials.

      (2) "Biobased product" shall include the following;

      (i) "Biobased liquid fuel" means a liquid fuel that is derived principally from renewable

biomass and meets the specifications or quality certification standards for use in residential,

commercial, or industrial heating applications established by ASTM International--ASTM D396,

or the appropriate successor standard, as the case may be.

      (ii) "Biodiesel fuel" means the monoalkyl esters of long chain fatty acids derived from

plant or animal matters which meet the registration requirements for fuels and fuel additives

established by the United States environmental protection agency under section 211 of the clean

air act, 42 U.S.C. § 7545, and the requirements of ASTM International--ASTM D6751.

      (iii) "Renewable biomass" means a material, including crops and crop residues, trees and

tree residues, organic portions of municipal solid waste, organic portions of construction and

demolition debris, grease trap waste, and algae, that can be used for fuel but does not have a

petroleum or other fossil fuel base.

      (3) "Director" means the director of the department of environmental management. "Fuel

oil terminal" means a fuel oil storage and distribution facility that is supplied by pipeline or

waterborne vessel, and from which fuel oil may be distributed at a loading rack into a truck,

trailer, or railroad car. Fuel oil terminals may be supplied by additional means such as tank trucks

or railroad cars.

      (4) "Heating oil" means fuel or fuel oil used for heating residential, commercial, or

industrial properties, including No. 1 distillate, No. 2 distillate, a liquid blended with No. 1

distillate, No. 2 distillate, or a five percent (5%) biobased liquid fuel that meets the specifications

or quality certification standards for use in residential, commercial, or industrial heating

applications established by ASTM International.

     23-23.7-4. Heating oil biobased products. -- Notwithstanding any law, rule, regulation,

or order to the contrary, and in accordance with the compliance schedule established in this

chapter, all No. 2 distillate heating oil sold in the state for residential, commercial, or industrial

uses within the state, shall contain, at a minimum on average, the specified percentage of

biobased product, unless such requirement has been suspended pursuant to § 23-23.7-6. The

compliance schedule shall be as follows:

      (1) Not later than July 1, 2014, all No. 2 distillate heating oil sold in the state shall

contain not less than two percent (2%) of a biobased product on average.

      (2) Not later than July 1, 2015, all No. 2 distillate heating oil sold in the state shall

contain not less than three percent (3%) of a biobased product on average.

      (3) Not later than July 1, 2016, all No. 2 distillate heating oil sold in the state shall

contain not less than four percent (4%) of a biobased product on average.

      (4) Not later than July 1, 2017, all No. 2 distillate heating oil sold in the state shall

contain not less than five percent (5%) of a biobased product on average.

     23-23.7-5. Certification. -- (a) The blender of the biobased product at the time of sale to

a distributor of Each fuel oil terminal that distributes heating fuel shall provide certification

stating:

      (1) That the No. 2 distillate heating fuel meets ASTM International--ASTM D396 and/or

the successor standard as the case may be; and

      (2) That the biobased product used for blending meets the definition of biobased product

in subdivision 23-23.7-3(2); and

      (3) The percentage of the biobased product contained in the fuel.

      (b) The director office of energy resources shall create and provide to blenders fuel oil

terminals a quarterly semiannual report form to be filed by the blender fuel oil terminal with the

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department of environmental management office of energy resources stating the number of

gallons of biobased fuel sold and certification that said gallons meet the standards set forth in this

chapter.

     23-23.7-6. Enforcement. -- It shall be the responsibility of the director of the department

of environmental management commissioner of the office of energy resources to administer and

enforce this chapter.

     23-23.7-7. Suspension. – (a) The governor of the state of Rhode Island may temporarily

suspend the requirements imposed by § 23-23.7-4 if it is determined by the office of energy

resources that the physical availability of biobased product heating oil which complies with these

requirements is inadequate at commercially reasonable prices to meet the needs of the residential,

commercial, or industrial uses in this state and the inadequate availability constitutes an

emergency, provided that the governor, shall specify in writing, the period of time the suspension

shall be in effect shall not exceed six (6) months. Any person seeking a suspension under this

subsection shall submit a request in writing to the office of energy resources that provides

sufficient information to demonstrate that the physical availability of biobased product heating oil

which complies with these requirements is inadequate at commercially reasonable prices to meet

the needs of the residential, commercial, or industrial uses in this state and the inadequate

availability constitutes an emergency.

     (b) The office of energy resources may, upon application by a fuel oil terminal, defer

compliance with the requirements imposed by § 23-23.7-4 for that fuel oil terminal where

compliance is not possible for good cause shown; provided that the order shall not defer

compliance for more than six (6) months. Any person seeking a deferral under this subsection

shall submit a request in writing to the office of energy resources that provides sufficient

information to demonstrate why a deferral of compliance is needed.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- BIODIESEL HEATING OIL ACT OF 2013

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     This act would replace the director of the department of environmental management with

the commissioner of the office of energy resources as the individual responsible to administer and

enforce the law on biodiesel heating oil. In addition, it would establish a procedure to follow in

order to obtain a temporary suspension from compliance when there is an inadequate supply of

biobased products.

     This act would take effect upon passage.

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