HCS HB 1270 & 1027 -- ETHANOL-BLENDED FUEL

SPONSOR:  Myers (Behnen)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture Policy by a vote of 20 to 0 with 2 present.

This substitute requires, by January 1, 2009, that all gasoline
sold in Missouri contain at least 10% agriculturally derived,
denatured ethanol by volume, unless exempted by the federal
Environmental Protection Agency, by a rule promulgated by the
Director of the Department of Agriculture, or by a waiver issued
by the Governor.  The provisions of the substitute do not apply
to premium gasoline or gasoline sold for use in aircraft.

Beginning January 1, 2008, and annually thereafter, the
department is required to provide to the General Assembly and the
Governor a report containing data and information concerning the
production of and the demand for fuel ethanol and fuel
ethanol-blended gasoline.

If a distributor is unable to purchase fuel ethanol or fuel
ethanol-blended gasoline from a terminal or supplier due to an
insufficient supply, the terminal operator or supplier is
required to submit an affidavit to the distributor attesting to
the insufficient supply.  Upon verification of the insufficient
supply in the market, the unblended gasoline is deemed in
compliance with the provisions of the substitute.  The bill of
sale, bill of lading, or invoice accompanying the purchase of
unblended gasoline is required to indicate "no fuel ethanol or
fuel ethanol blended gasoline is available for sale."

All fuel terminals in the state must offer for sale fuel ethanol
and gasoline which has not been blended with fuel ethanol.  Fuel
retailers, wholesalers, marketers, and distributors may sell
premium gasoline that has not been blended with fuel ethanol.
Fuel ethanol producers, retailers, wholesalers, distributors, and
terminal owners or operators are not civilly liable for any
carcinogenic effect directly attributable to the manufacture,
storage, transportation, handling, or selling of fuel ethanol.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the use of ethanol-blended
gasoline contributes to a cleaner environment, reduces Missouri's
dependence on foreign oil, and aids in rural economic
development.

Testifying for the bill were Representatives Behnen and
Munzlinger; Missouri Petroleum Marketers and Convenience Store
Association; Missouri Corn Growers Association; Missouri Farm
Bureau; Northeast Missouri Grain, LLC; Missouri Ethanol; National
Corn Growers Association; National Ethanol Vehicle Coalition; and
Department of Agriculture.

OPPONENTS:  Those who oppose the bill say that the production
capacity of Missouri ethanol producers is insufficient to
accommodate the ethanol portion of the blended fuel requirement;
and as a captive market, Missouri consumers will experience
higher gasoline prices.  Non-resident motorist purchases of
gasoline in Missouri will decrease.  The content of gasoline
should be dictated by consumer demand, not by legislation.

Testifying against the bill were Casey's General Stores,
Incorporated; and American Petroleum Institute.

OTHERS:  Others testifying on the bill say that additional time
is needed to refit terminals to comply with the ethanol content
requirement.  All Missouri terminals could be ready by
October 15, 2007.  Ethanol-blended gasoline causes certain
mechanical problems when used for marine purposes.

Others testifying on the bill were Missouri Marine Dealers
Association; and Magellan Petroleum Corporation.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am