HCS/SS#2/SCS/SB 204 - Under current law, the biodiesel producer monthly incentive payment is calculated based on the estimated number of gallons of biodiesel produced from agricultural products originating in Missouri. This act removes the in-state origination criteria and allows the incentive payment to be calculated based on the amount of biodiesel produced from agricultural products originating in any state.
The act requires that all diesel fuel sold at retail in Missouri after April 1, 2010 shall be a biodiesel-blended fuel.
If the acquisition of biodiesel-blended fuel is more expensive for a distributor than acquisition of conventional diesel fuel, the distributor is not required to acquire biodiesel-blended fuel and neither this nor the sale of conventional diesel fuel at retail will be considered a violation of the act.
Diesel fuel used by railroads and nuclear power generation facilities are exempt from the act’s provisions. The Director of the Department of Agriculture may exempt additional fuel uses from the requirements of the act. Under current law, the Governor may waive the requirements of the Missouri Renewable Fuel Standard Act for reasons related to air quality. This act removes the criteria that the reasons be related to air quality.
In developing its rules to implement the act, the Department of Agriculture shall as far as practicable apply certain requirements of the National Biodiesel Accreditation Commission to biodiesel producers.
Fuel terminals in Missouri that sell diesel fuel shall sell biodiesel-blended fuel that contains 5% biodiesel by volume, but it shall not be considered a violation for a terminal to sell biodiesel-blended fuel that contains more than 5% biodiesel by volume provided any such sale adheres to certain notification requirements as listed.
The Department of Agriculture shall develop cold temperature operability standards for biodiesel and shall enforce the standards beginning January 1, 2010.
Anyone who manufactures biodiesel that does not meet the quality standard as established by the Department of Agriculture may be subject to a penalty of up to $10,000 per violation as well as be subject to a cease and desist order.
Under current law, 20% biodiesel-blended fuel (B-20) is required to be used by the Department of Transportation when the cost difference between the B-20 and conventional diesel fuel is not more than 25 cents. This act requires such fuel to be used when the cost of acquiring the biodiesel-blended fuel is equal to or less than the cost of acquiring conventional diesel fuel.