SB 759
Requires all diesel fuel sold at retail in Missouri after a certain date to be a biodiesel-blended fuel
LR Number:
Last Action:
4/29/2008 - Hearing Conducted H Transportation Committee
Journal Page:
SCS SB 759
Calendar Position:
Effective Date:
August 28, 2008

Current Bill Summary

SCS/SB 759 - The act requires the Department of Agriculture to issue a determination once it finds that the price of biodiesel or biodiesel-blended fuel has on average been less than or equal to the cost of conventional diesel fuel for one year. By the later of either June 1, 2010, or 120 days after the Department's price determination issuance, all diesel fuel sold at retail in Missouri shall be a biodiesel-blended fuel. By the later of either May 1, 2010, or 90 days after the Department's price determination issuance, fuel terminals in Missouri that sell diesel fuel shall sell biodiesel, conventional diesel fuel, and biodiesel-blended fuel that contains 5% biodiesel by volume. 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 notification requirements promulgated by the Department of Agriculture.

The act allows distributors to purchase unblended gasoline at the terminal for the purpose of making fuel ethanol-blended gasoline in order to comply with the fuel ethanol content requirements in current law, if the distributor can make the fuel ethanol blended gasoline at the same or lower cost of purchasing the blended fuel directly from the terminal.

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. The purchase of conventional diesel fuel by a distributor for the purpose of making five-percent biodiesel-blended fuel is allowable under the act. Position holders, suppliers, distributors, and retailers shall provide certain sales transaction and price information to the Departments of Agriculture and Revenue upon request. Such sales and price information shall be kept confidential by the departments.

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 issue an Executive Order to waive any of the current fuel-ethanol requirements for reasons related to air quality. The act removes the air quality criteria, thereby allowing the Governor to issue an Executive Order to waive the current fuel ethanol or the act's biodiesel requirements for any reason.

In promulgating rules for the act, the Department of Agriculture shall, as much as practicable, apply to biodiesel producers the requirements of an "accredited producer" in the BQ-9000 program of the National Biodiesel Accreditation Commission.

Current law allows fuel retailers, wholesalers, distributors, and marketers to purchase fuel ethanol from any terminal, position holder, fuel ethanol producer, wholesaler, or supplier. The act allows these entities to purchase biodiesel in the same manner.

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 promulgated 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.

The Department of Agriculture may annually contract with the Food & Agricultural Policy Research Institute at the University of Missouri to study the effect of biodiesel and fuel ethanol production on the prices of fuel and food. The results of the study shall be submitted to the General Assembly each year by January 15th.

This act is similar to HCS/SS#2/SCS/SB 204 (2007).