2018 -- S 2358 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

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

     

     Introduced By: Senators Sosnowski, Crowley, Miller, Conley, and Coyne

     Date Introduced: February 15, 2018

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

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

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

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read as follows:

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     23-23.7-3. Definitions.

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     As used in this chapter, the following words shall have the following meanings:

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

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

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

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

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

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

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

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

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

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

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

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

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

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petroleum or other fossil fuel base.

 

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

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     (4) "Fuel oil terminal" means a fuel oil storage and distribution facility that is supplied by

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

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

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trucks or railroad cars.

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

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

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

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

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applications established by ASTM International.

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     23-23.7-4. Heating oil biobased products.

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     Notwithstanding any law, rule, regulation, or order to the contrary, and in accordance

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with the compliance schedule established in this chapter, all No. 2 distillate heating oil sold in the

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state for residential, commercial, or industrial uses within the state, shall contain, at a minimum,

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the specified percentage of biobased product, unless such requirement has been suspended

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pursuant to § 23-23.7-6. The compliance schedule shall be as follows:

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

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

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

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

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

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

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

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

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     (5) Not later than July 1, 2018, all No. 2 distillate heating oil sold in the state shall

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

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     23-23.7-5. Certification.

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     (a) The blender of the biobased product at the time of sale to a distributor of Each fuel oil

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terminal that distributes heating fuel oil shall provide certification stating:

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

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the successor standard as the case may be; and

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

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

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

 

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     (b) The director shall create and provide to blenders fuel oil terminals a quarterly report

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form to be filed by the blender fuel oil terminals with the department of environmental

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management stating the number of gallons of biobased fuel sold and certification that said gallons

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meet the standards set forth in this chapter.

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     23-23.7-7. Suspension.

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     (a) The governor of the state of Rhode Island may temporarily suspend the requirements

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imposed by § 23-23.7-4 if it is determined that the physical availability of biobased product

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heating oil which complies with these requirements is inadequate at commercially reasonable

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prices to meet the needs of the residential, commercial, or industrial uses in this state and the

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inadequate availability constitutes an emergency, provided that the governor, shall specify in

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writing, the period of time the suspension shall be in effect shall be in writing and shall not

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exceed six (6) months. Any person seeking a suspension under this section shall submit a request,

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in writing, to the governor that provides sufficient information to demonstrate that the physical

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availability of biobased product heating oil which complies with these requirements is inadequate

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at commercially reasonable prices to meet the needs of the residential, commercial, or industrial

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uses in this state and that the inadequate availability constitutes an emergency.

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     (b) The director may, upon application, defer compliance with the requirements imposed

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by § 23-23.7-4 for a period not to exceed three (3) months where compliance is not possible for

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good cause shown. Any fuel oil terminal seeking a deferral of compliance under this section shall

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submit a request, in writing, to the director that provides sufficient information to demonstrate

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why a deferral of compliance is needed.

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     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 add a definition for "fuel oil terminal" for the purposes of the Biodiesel

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heating oil act of 2013, and would establish procedures for obtaining temporary suspensions from

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compliance when there is an inadequate supply of biobased product, or when good cause is

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shown.

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     This act would take effect upon passage.

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