H-709                _______________________________________________

                                                   HOUSE BILL NO. 1402

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Nealey, Rayburn, Baugher, McLean, Brooks, Haugen and Moyer

Read first time 1/23/89 and referred to Committee on Transportation.

AN ACT Relating to ethanol motor fuels; adding a new chapter to Title 46 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.     The purpose of this act is to enhance the energy security of the United States, improve the environment, and expand markets for agricultural commodities by providing for the increased use of motor fuel blended with ethanol.

NEW SECTION. Sec. 2.     (1) In any calendar year beginning with calendar year 1990, the total quantity of motor fuel sold annually in commerce in the state of Washington by wholesale distributors shall contain, on the average, not less than the percentage of ethanol by volume set forth for the calendar year shown in the following table:

!tm1,1,1 !tj2!tcPercentage!sc ,1of

!tj2!tcethanol!sc ,1in!sc ,1motor

!tcCALENDAR!SC ,1YEAR!tj1!tcfuel!sc ,1by!sc ,1volume

!tc1990  !tj1!tc1.0

!tc1991 !tj1!tc1.5

!tc1992 !tj1!tc2.5

!tc1993 !tj1!tc3.5

!tc1994 and thereafter !tj1!tc5.0

          (2) (a) The percentage of ethanol in motor fuel sold by a wholesale distributor shall be determined by measuring the ethanol content by volume of the motor fuel sold by the wholesale distributor as may be modified in accordance with (b) of this subsection.

          (b) If a wholesale distributor sells motor fuel with an ethanol content which is in excess of the content required by subsection (1) of this section, another wholesale distributor may arrange, in accordance with rules adopted by the department of licensing, with such wholesale distributor to have all or part of the excess ethanol credited to such other wholesale distributor in such a manner that the other wholesale distributor shall be considered to have sold the excess ethanol.

          (3) Each wholesale distributor of motor fuel shall report to the department of licensing the amount of ethanol contained in the motor fuel sold by the distributor in the calendar year.  The amount shall be expressed as a percentage of total sales.  The report shall be made within thirty days of the expiration of the calendar year.

          A wholesale distributor who arranges under subsection (2)(b) of this section to have part of its excess ethanol credited to another wholesale distributor shall report to the department of licensing the amount credited to each other wholesale distributor and the identity of the other wholesale distributors who entered into such arrangement.  Such report shall be made within thirty days of the expiration of the calendar year.

          A wholesale distributor who arranges under subsection (2)(b) of this section to have part of the excess ethanol of another wholesale distributor credited to its sales of ethanol shall report to the department of licensing the amount credited to its sales and the identity of the wholesale distributors with which it entered into such arrangement.  Such report shall be made within thirty days of the expiration of the calendar year.

NEW SECTION. Sec. 3.     Each wholesale distributor which does not meet the requirements of section 2(1) of this act shall pay a civil penalty of not more than one dollar for each gallon of motor fuel which does not comply with such requirement.  The civil penalty shall be assessed by the director of licensing in accordance with chapter 34.05 RCW.

NEW SECTION. Sec. 4.     The department of agriculture shall establish a program to promote the development and use of ethanol in motor fuel.  The program shall include efforts to inform the public of the benefits of increasing the use of ethanol in motor fuel.

NEW SECTION. Sec. 5.     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

          (1) "Ethanol" means any ethyl alcohol that is suitable for use by itself or in combination with other fuels as a motor fuel, except that it does not include ethanol produced from petroleum or natural gas; and

          (2) "Motor fuel" means any substance suitable as a fuel for self-propelled vehicles designed primarily for use on public streets, roads, and highways.

NEW SECTION. Sec. 6.     Sections 2 through 5 of this act constitute a new chapter in Title 46 RCW.