An Act Regarding Ethanol Motor Fuel

Sec. 1. 10 MRSA §1457, sub-§4  is enacted to read:

Sec. 2. Stakeholder group; report. The Commissioner of Environmental Protection, referred to in this section as "the commissioner," shall convene a stakeholder group to conduct a study regarding motor fuel and fuel additives, including but not limited to acetaldehyde in ethanol motor fuel. The commissioner, the Commissioner of Transportation, the Commissioner of Economic and Community Development and the chair of the Public Utilities Commission, or their designees, shall serve as members of the stakeholder group, and the commissioner shall invite the participation of interested persons and groups, including but not limited to consumer protection groups, small businesses, motor vehicle dealers and owners of motor fuel refueling stations. The stakeholder group shall specifically:

1. Review the extent to which the State is in compliance with the federal Clean Air Act Amendments of 1990 with respect to the emissions of acetaldehyde produced by the combustion of ethanol motor fuel;

2. Examine whether an increase from 10% ethanol to 15% ethanol in gasoline blends will increase the level of acetaldehyde emissions and decrease the State's ability to comply with the federal Clean Air Act Amendments of 1990;

3. Conduct a comprehensive review of the statewide costs associated with acetaldehyde in ethanol motor fuel, including but not limited to the corrosive effects of acetaldehyde on small engines, the effects of acetaldehyde on marine resources in the State and the negative impact such effects have on business in the State;

4. Examine the impact of federal subsidies for corn used to produce ethanol on the cost of food locally and globally;

5. Compare the net energy value of corn-derived ethanol to that of ethanol derived from other products, such as other grains or algae;

6. Explore alternatives to ethanol motor fuel, including but not limited to biofuels developed from wood pulp; and

7. Develop a plan to reduce the supply of ethanol motor fuel in the State.

The commissioner shall report the stakeholder group's findings and recommendations regarding the study, including any proposed implementing legislation, to the Joint Standing Committee on Environment and Natural Resources by December 1, 2015. The committee may report out a bill relating to those recommendations to the Second Regular Session of the 127th Legislature.

summary

This bill amends the law regarding ethanol-enhanced motor fuel to clarify that a motor fuel distributor, franchisor or refiner may not impose any condition, restriction, agreement or understanding that prohibits or limits the sale, resale, transfer or purchase of conventional, ethanol-free motor fuel products in the State. The bill also directs the Commissioner of Environmental Protection to convene a stakeholder group to conduct a study regarding motor fuel and fuel additives, including but not limited to acetaldehyde in ethanol motor fuel. The stakeholder group is directed to study the State's compliance with the federal Clean Air Act Amendments of 1990 with respect to emissions of acetaldehyde produced by the combustion of ethanol motor fuel, and conduct a comprehensive review of the statewide costs associated with the acetaldehyde in ethanol motor fuel, including the corrosive effects of acetaldehyde on small engines, the effects of acetaldehyde on marine resources in the State and the negative impact such effects have on business in the State. The commissioner shall report the stakeholder group's findings to the Joint Standing Committee on Environment and Natural Resources by December 1, 2015. The committee may report out a bill to the Second Regular Session of the 127th Legislature.