HOUSE BILL REPORT

HB 1450

BYRepresentatives R. Meyers, Heavey, Schmidt, Walk, D. Sommers, Todd, Kremen, Jones, Zellinsky, Haugen, Wood, Prentice, Cooper, Chandler and Winsley

Regulating motor fuel quality.

House Committe on Transportation

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (26)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Cantwell, Cooper, Day, G. Fisher, R. Fisher, Gallagher, Hankins, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:Brad Lovaas (786-7307)

AS REPORTED BY COMMITTEE ON TRANSPORTATION FEBRUARY 13, 1989

BACKGROUND:

Motor gasoline standards were first established in 1937, and have been updated nearly every year since 1970.  Currently, 39 states have motor fuel quality standards.  Twenty-nine require all motor fuels to meet the standards of the American Society of Testing and Materials (ASTM), and ten states have set their own standards.  Eleven states, including Washington, have no motor fuel quality laws.

SUMMARY:

SUBSTITUTE BILL:  A motor fuel quality program is established within the Department of Agriculture.  The Department is authorized to sample and test all motor fuels sold in the state.  All motor fuels must be registered before being offered for sale.  A violation of this provision is punishable as a misdemeanor.  Eight hundred twenty thousand dollars is appropriated for the establishment and operation of a testing laboratory and the funding of the program.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Language is deleted which allowed the Director to amend ASTM standards.  Language is added to clarify that gasoline must be sold under its trademark only until sale at the terminal.  The penalty section is clarified to apply only to people who knowingly violate the provisions of the chapter.

The appropriation is reduced from $2 million to $820,000 to reflect the costs of establishing and maintaining a motor fuel quality laboratory in the 1989-91 biennium.

The effective date of the section which establishes the testing lab is changed from July 1, 1990 to July 1, 1989 to allow for establishment during the first fiscal year so it will be ready to handle gasoline samples starting July 1, 1990.

Appropriation:    $820,000 to the Department of Agriculture.

Fiscal Note:      Available.

Effective Date:Section 4 (7) takes effect on July 1, 1989.  The remainder of the bill takes effect on July 1, 1990.

House Committee ‑ Testified For:    Tim Hamilton, Automobile United Trade Organization; Pat Halstead, Automobile Club of Washington; Randy Ray, Washington Oil Marketers Association; Stu Delaney, Department of Agriculture.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Thirty-nine states have fuel quality standards.  Washington has none.  Car systems are becoming more complex, and so is gasoline.  Alternative fuels and blends are being introduced into the market place.  Other than fuel quality, a program is needed to prevent profiteering from mislabeling with respect to octane levels.

House Committee - Testimony Against:      None Presented.