HOUSE BILL 282

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Hector H. Balderas

 

 

 

 

 

AN ACT

RELATING TO FUEL STANDARDS; ENACTING THE RENEWABLE FUELS STANDARDS ACT; REQUIRING CONTENTS OF ETHANOL AND BIODIESEL FUEL IN GASOLINE AND DIESEL FUEL; ESTABLISHING REPORTING REQUIREMENTS FOR DISTRIBUTORS AND DEALERS; PROVIDING PENALTIES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SHORT TITLE.--This act may be cited as the "Renewable Fuels Standards Act".

     Section 2. DEFINITIONS.--As used in the Renewable Fuels Standards Act:

          A. "biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and that meets American society for testing and materials specification D6751 for biodiesel fuel, B100, blend stock for distillate fuels;

          B. "dealer" means a dealer as defined by the Special Fuels Supplier Tax Act;

          C. "department" means the energy, minerals and natural resources department;

          D. "diesel fuel" means any diesel-engine fuel used for the generation of power to propel a motor vehicle;

          E. "distributor" means a distributor as defined by the Gasoline Tax Act;

          F. "ethanol" means an agriculturally derived ethyl alcohol that meets American society for testing and materials specification D4806 for denatured fuel ethanol for blending with gasolines for use as automotive spark-ignition engine fuel;

          G. "gasoline" means any flammable liquid hydrocarbon used primarily as fuel for the propulsion of motor vehicles, motorboats or aircraft except for diesel engine fuel, kerosene, liquefied petroleum gas, compressed or liquefied natural gas and products specially prepared and sold for use in aircraft propelled by turboprop or jet-type engines; and

          H. "secretary" means the secretary of energy, minerals and natural resources or the secretary's delegate.

     Section 3. GASOLINE--DIESEL FUEL--ETHANOL AND BIODIESEL FUEL CONTENT REQUIRED.--

          A. All gasoline sold to consumers for use in motor vehicles operated on the streets or highways of this state shall contain ten percent denatured ethanol by volume, exclusive of denaturants and permitted contaminants.

          B. All diesel fuel sold to consumers for use in motor vehicles operated on the streets or highways of this state shall contain two percent biodiesel fuel.

          C. The content requirements of this section shall not apply when:

                (1) the secretary, in consultation with the secretary of taxation and revenue and the director of the New Mexico department of agriculture, determines that sufficient amounts of denatured ethanol or biodiesel fuel are not available to meet the requirements of this section; or

                (2) the governor determines by executive order that an emergency or disaster has caused or appears likely to cause a disruption in the price or supply of gasoline or diesel fuel.

     Section 4. REPORTING REQUIREMENTS--ETHANOL AND BIODIESEL FUEL.--A distributor and a dealer shall file, at reporting dates established by rule of the taxation and revenue department and on forms prescribed and furnished by the taxation and revenue department, a statement that includes:

          A. the price and amount of ethanol and biodiesel fuel available to the distributor or dealer for blending;

          B. the amount of ethanol-blended gasoline and biodiesel-blended diesel fuel sold by the distributor or dealer; and

          C. any other information the taxation and revenue department, in consultation with the energy, minerals and natural resources department and the New Mexico department of agriculture, deems necessary to determine that sufficient amounts of ethanol and biodiesel fuel are available to comply with the minimum content requirements of Section 3 of the Renewable Fuels Standards Act.

     Section 5. PENALTIES--ADMINISTRATIVE PROCEDURES--APPEALS.--

          A. A person who violates the provisions of the Renewable Fuels Standards Act is guilty of a petty misdemeanor and shall be sentenced in accordance with Section 31-19-1 NMSA 1978.

          B. The department, in consultation with the taxation and revenue department and the New Mexico department of agriculture, shall establish a system of administrative penalties for violations of the Renewable Fuels Standards Act. The administrative penalties may be assessed by the department in lieu of or in addition to other penalties provided by law. In establishing the system of administrative penalties, the department, after public notice and public hearing, shall adopt rules that meet the following minimum requirements:

                (1) the maximum amount of any administrative penalty shall not exceed one thousand dollars ($1,000) for any one violation of the Renewable Fuels Standards Act;

                (2) violations for which administrative penalties may be assessed shall be clearly defined, along with a scale of administrative penalties relating the amount of the administrative penalty to the severity and frequency of the violation;

                (3) provisions shall be included for due process, including proper notification of administrative proceedings, right to discovery of charges and evidence and appeal procedures; and

                (4) prior to assessing administrative penalties pursuant to the provisions of the Renewable Fuels Standards Act, the department shall comply with Paragraphs (2) and (3) of this subsection.

          C. Appeals from decisions of the department regarding the assessment of an administrative penalty shall be to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978.

     Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2009.

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