BILL REQ. #:  H-1321.1 

Read first time 02/02/09.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to marine and aviation fuel; amending RCW 19.112.120; and adding a new section to chapter 19.112 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 19.112.120 and 2007 c 309 s 2 are each amended to read as follows:
     (1) By December 1, 2008, motor vehicle fuel licensees under chapter 82.36 RCW, other than motor vehicle fuel distributors, shall provide evidence to the department of licensing that at least two percent of total gasoline sold in Washington, measured on a quarterly basis, is denatured ethanol.
     (2) If the director of ecology determines that ethanol content greater than two percent of the total gasoline sold in Washington will not jeopardize continued attainment of the federal clean air act's national ambient air quality standard for ozone pollution in Washington and the director of agriculture determines and publishes this determination in the Washington State Register that sufficient raw materials are available within Washington to support economical production of ethanol at higher levels, the director of agriculture may require by rule that licensees provide evidence to the department of licensing that denatured ethanol comprises between two percent and at least ten percent of total gasoline sold in Washington, measured on a quarterly basis.
     (3) The requirements of subsections (1) and (2) of this section shall take effect no sooner than one hundred eighty days after the determination has been published in the Washington State Register.
     (4) The director and the director of licensing shall each adopt rules, in coordination with each other, for enforcing and carrying out the purposes of this section.
     (5) Nothing in this section is intended to prohibit the production, sale, or use of motor fuel for use in federally designated flexibly fueled vehicles capable of using E85 motor fuel. Nothing in this section is intended to limit the use of high octane gasoline not blended with ethanol for use in aircraft.
     (6)(a) Notwithstanding the provisions of this section or this chapter, conventional unleaded gasoline must be made available for purchase at all distribution terminals located in Washington state. Conventional unleaded gasoline must be available in quantities sufficient, as determined by the director of the department of licensing, for end-use in marine and aviation applications in Washington state. Unless a sufficient supply of conventional unleaded gasoline is available for other applications, conventional unleaded gasoline must be limited to end-use in marine and aviation applications.
     (b) For the purposes of this subsection, "conventional unleaded gasoline" means gasoline with an octane rating, however attained, of not less than eighty-seven that has not been blended or otherwise combined with ethanol or denatured alcohol.

NEW SECTION.  Sec. 2   A new section is added to chapter 19.112 RCW to read as follows:
     For the purposes of this chapter, retailers and distributors of marine and aviation fuel shall be held harmless and have an absolute defense in any action brought by an end-user if the fuel delivered to the end-user contains ethanol or denatured alcohol as required by this chapter and the retailer or distributor did not have direct access to conventional unleaded gasoline when taking delivery from the fuel supplier.