2018 -- S 2358 SUBSTITUTE A

========

LC004636/SUB A

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

____________

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:

     SECTION 1. Sections 23-23.7-3, 23-23.7-4, 23-23.7-5 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.

     (4) "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)(5) "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,

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.

     (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.

     (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.

     (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.

     (5) Not later than July 1, 2018, 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 oil 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.

LC004636/SUB A - Page 2 of 3

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

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

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

meet the standards set forth in this chapter.

     23-23.7-7. 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 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 be in writing and shall not

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

in writing, to the governor 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 that the inadequate availability constitutes an emergency.

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

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

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

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

why a deferral of compliance is needed.

     SECTION 2. This act shall take effect upon passage.

========

LC004636/SUB A

========

LC004636/SUB A - Page 3 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

***

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

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

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

shown.

     This act would take effect upon passage.

========

LC004636/SUB A

========

LC004636/SUB A - Page 4 of 3