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PA Bulletin, Doc. No. 09-1873

NOTICES

DEPARTMENT OF AGRICULTURE

In-State Production Levels and Infrastructure Sufficient to Trigger 2% Biodiesel Content in Diesel Fuel Sold for On-Road Use

[39 Pa.B. 5930]
[Saturday, October 10, 2009]

 The Department of Agriculture (Department) hereby publishes notice that the In-State production levels and infrastructure requirements established by Act 78 of 2008, known as the Biofuel Development and In-State Production Incentive Act (act) (73 P. S. §§ 1650.1—1650.7) have been certified as having been met and that the biodiesel content requirement of section 3(a)(1) of the act shall be enforced by the Department effective May 1, 2010. As set forth as follows, this date is at least 1 year after the required in-State production volume of biodiesel was reached, in accordance with section 3(a)(1) of the act, and at least 6 months after the issuance of a joint certification of infrastructure, as required by sections 3(a)(1) and 6(a), (b) and (c) of the act (73 P. S. §§ 1650.3(a)(1) and 1650.6(a)(b) and (c)).

 The act requires the Department to certify that: (1) in-State production volume levels of biodiesel—as established by the act—have been met; and (2) sufficient infrastructure, including, transportation, distribution, rail capacity and terminal facilities exist within this Commonwealth to meet the requirements of the act. The second certification is a joint certification of the Department and the Department of Transportation (DOT).

 More specifically, section 3 of the act requires, ''All diesel fuel sold or offered for sale to ultimate consumers in this Commonwealth, for use in on-road compression ignition engines must contain at least 2% biodiesel . . . one year after the In-State production volume of 40,000,000 gallons of biodiesel has been reached and sustained for three months on an annualized basis . . .'' See 73 P. S. § 1650.3(a)(1). The Department has the duty and authority to make such a determination. See 73 P. S. § 1650.3(a)(1).

 Section 6 of the act requires, ''At least six months prior to the effective dates of the mandated content requirements . . . the department and the Department of Transportation shall jointly make certification as to whether there is sufficient transportation, distribution and other necessary infrastructure, including rail capability and terminal facilities, in this Commonwealth to meet the requirements of the act.'' (73 P. S. § 1650.6(a).) In addition, both Departments were required to hold at least three public hearings across the Commonwealth and submit an infrastructure report to the General Assembly and post such reports on each Department's publicly accessible web site. See 73 P. S. § 1650.6(b) and (c).

 The Department issued a memorandum in January 2009 (Attachment A) notifying and certifying the required production volume triggers had been met as of September 1, 2008. The memorandum explained the Department utilized production volumes reported in June—August 2008 to determine the annualized production volume of 40,000,000 gallons of biodiesel had been attained.

 The Department and the DOT held three public hearings across the Commonwealth (May 18, 2009, in Pittsburgh, May 20, 2009, in State College and May 22, 2009, in Whitehall, PA). The times, dates and agendas for those public hearings were published at 39 Pa.B. 2349 (May 9, 2009).

 The Departments drafted a joint ''Report to the Pennsylvania General Assembly on 2% Biodiesel Infrastructure Certification." The report was delivered to the General Assembly and Governor on August 27, 2009. Section IX of the report certified that sufficient infrastructure existed in the Commonwealth to meet the 2% bio- diesel requirements of section 3(a)(1) of the act. The report can be found in its entirety at http://www.agriculture.state.pa.us/agriculture/lib/agriculture/pdfdocs/Biodiesel_ B2_Infrasturcture_Certification_to_General_Assembly_ 08.27.2009_Digital_Ver.pdf or by contacting Michael Rader, Bureau of Ride and Measurement Standards at (717) 787-9089.

RUSSELL C. REDDING, 
Acting Secretary

ATTACHMENT A

 Pursuant to requirements outlined in Act 78 (House Bill 1202 of 2007-2008), the Department of Agriculture collects in-state production volumes for all biodiesel manufactured throughout the Commonwealth. This memo serves as notification and certification that production volume triggers have been met effective September 1, 2008, as outlined in Section 3(A)(1).

SECTION 3. BIODIESEL CONTENT IN DIESEL FUEL SOLD FOR ON-ROAD USE.

 (A) VOLUME STANDARDS.—THE FOLLOWING STANDARDS SHALL APPLY:

   (1) ALL DIESEL FUEL SOLD OR OFFERED FOR SALE TO ULTIMATE CONSUMERS IN THIS COMMONWEALTH FOR USE IN ON-ROAD COMPRESSION IGNITION ENGINES MUST CONTAIN AT LEAST 2% BIODIESEL BY VOLUME ONE YEAR AFTER THE IN-STATE PRODUCTION VOLUME OF 40,000,000 GALLONS OF BIODIESEL HAS BEEN REACHED AND SUSTAINED FOR THREE MONTHS ON AN ANNUALIZED BASIS AS DETERMINED BY THE DEPARTMENT.

 Production volumes reported to the Department for June (3,901,225), July (2,943,757) and August (3,199,406) 2008, have been used in our calculation. The calculation used to determine the mandate trigger is the total gallons produced over a three month period (quarterly), and then annualized.

[June (3,901,225) + July (2,943,757) + August (3,199,406)] × 4 = 40,177,552
[Pa.B. Doc. No. 09-1873. Filed for public inspection October 9, 2009, 9:00 a.m.]


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