Reminder to Obligated Parties: Temporary Suspension of B20 Mandate Ends June 30, 2018
By July 1, 2018, all diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines must contain at least twenty percent (20%) biodiesel (B20). Any obligated party including gas stations and bulk delivery services that is currently selling diesel containing less than twenty percent (20%) biodiesel should take steps now to ensure tanks contain twenty percent (20%) biodiesel by the end of June.
Due to supply constraints, the minimum biodiesel content requirement of twenty percent (20%) that went into effect on May 1, 2018 under Minnesota Statutes §239.77, subd. 2(a) was temporarily suspended through June 30, 2018. Diesel fuel offered for sale in Minnesota during the temporary suspension was required to meet the biodiesel minimum content requirement of ten percent (10%) that was in effect prior to May 1, 2018 under Minnesota Statutes §239.77, subd. 2(a).
Why was the B20 mandate temporarily suspended?
The Commerce Commissioner used the authority granted in Minnesota Statutes §239.77, subd. 2(d) to suspend the B20 mandate because of the temporary closing of a Minnesota biodiesel plant which caused a forty-seven percent (47%) reduction in biodiesel production in the state.
What does the end of the B20 mandate temporary suspension mean for retail stations and other obligated parties?
After June 30, 2018, all diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines must again contain at least twenty percent (20%) biodiesel fuel oil by volume.
- Stations must turn their tanks by July 1, 2018 so that the fuel dispensed at their retail pumps contains at least twenty percent (20%) biodiesel by volume.
- Starting on July 1, 2018, distributers must again deliver fuel to fleets, farms, and other end users which contains at least twenty percent (20%) biodiesel by volume.
As a retailer, can I wait until July 1, 2018 to resume taking deliveries of B20?
No. By July 1, 2018 all diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines must again contain twenty percent (20%) biodiesel fuel oil by volume. The temporary suspension was timed to allow stations approximately two weeks to turn their storage tanks over after biodiesel supplies were expected to return to normal productions levels.
- Stations should start taking deliveries of B20 before June 30th, so that the diesel fuel dispensed at their pumps contains twenty percent (20%) biodiesel by volume on July 1.
- Any fuel delivered to fleets, farms, and other end users after June 30th, must contain twenty percent (20%) biodiesel by volume.
Will the Weights & Measures Division enforce the B20 mandate after June 30, 2018?
Yes. Weights & Measures inspectors will continue to take fuel samples and audit delivery records to ensure that after June 30, 2018, all diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines contains at least twenty percent (20%) biodiesel fuel oil by volume.
Weights & Measures Division
Minnesota Department of Commerce
14305 Southcross Drive Suite 150, Burnsville MN 55306
Update ELD Rule
As you know, implementation of the ELD rule is a top FMCSA priority. It represents a significant change for a large portion of the industry and a large focus of discussion in Washington DC and nationally.
To ease the transition to ELDs, FMCSA’s partners at the Commercial Vehicle Safety Alliance (CVSA) have previously announced a delay in placing non-ELD compliant vehicles out-of-service until April 1, 2018, which will allow continued time for carriers and law enforcement to adjust to the new technology. In addition, FMCSA is announcing that violations cited during the period of December 18, 2017 through April 1, 2018, will not count against a carrier’s Safety Measurement System (SMS) scores.
In the coming weeks, FMCSA will publish guidance for comment relating to the application of the agricultural commodity hours-of-service exemption. FMCSA will also provide guidance on the existing 150 air-miles hours-of-service exemption in order to provide clarity to enforcement and industry, and will consider comments received before publishing final guidance.
Finally, FMCSA will publish guidance on another hours-of-service issue, known as Personal Conveyance, which has become more relevant due to the upcoming ELD rule enforcement. The goal of these guidance documents is to take input on their application and develop a consistent and uniform application of the provision.
We have had a few calls to the Association office regarding the sale of B-20 in Minnesota. On April 30, 2014 Governor Mark Dayton signed a bill that modified the biodiesel mandate chapter 239.77. The following should help you understand the changes and what actions you will need to take to sell biodiesel at retail…
• On April 1, 2018 the bio content requirement is 10%.
• On May 1, 2018 through September 30, 2018, considered warm months, the biodiesel content must be at least 20% biodiesel fuel by volume going forward.
• Future years, April 1, will start the bio content of 20%
• During the cold weather months, October 1 through March 31, the biodiesel mandate reverts back to at least 5% biodiesel fuel by volume.
• Motors located at an electric generating plant regulated by the Nuclear Regulatory Commission. Railroad locomotives.
• Off-road taconite and copper mining equipment and machinery.
• Off-road logging equipment and machinery.
• Vessels of the United States Coast Guard and vessels subject to inspection under United States Code, title 46, section 3301.
• Generators tested and validated by an entity that designs and manufactures the generators for use in jurisdictions where biodiesel use is not required.
• The exemptions listed above do not have a sunset date.
• Number 1 diesel fuel is exempt year round until May 21, 2020.
• The Federal Trade Commission sticker (see label) is required at the point-of-sale on all retail diesel fuel pumps.