1.1.................... moves to amend H.F. No. 3203 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 239.77, subdivision 2, is amended to read:
1.4    Subd. 2. Minimum content. (a) Except as otherwise provided in this section, all
1.5diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines
1.6must contain at least the stated percentage of biodiesel fuel oil by volume on and after
1.7the following dates:
September 29, 2005
2 percent
May 1, 2009
5 percent
May 1, 2012
10 percent
May 1, 20152018
20 percent
1.12    The minimum content levels in clauses (3) and (4) are effective during the months of
1.13April, May, June, July, August, and September, and October only. The minimum content
1.14for the remainder of the year is five percent. However, if the commissioners of agriculture,
1.15commerce, and pollution control determine, after consultation with the biodiesel task
1.16force and other technical experts, that an American Society for Testing and Materials
1.17specification or equivalent federal standard exists for the specified biodiesel blend level in
1.18those clauses that adequately addresses technical issues associated with Minnesota's cold
1.19weather and publish a notice in the State Register to that effect, the commissioners may
1.20allow the specified biodiesel blend level in those clauses to be effective year-round.
1.21    (b) The minimum content levels in paragraph (a), clauses (3) and (4), become
1.22effective on the date specified only if the commissioners of agriculture, commerce,
1.23and pollution control publish notice in the State Register and provide written notice to
1.24the chairs of the house of representatives and senate committees with jurisdiction over
1.25agriculture, commerce, and transportation policy and finance, at least 270 days prior to the
1.26date of each scheduled increase, that all of the following conditions have been met and the
1.27state is prepared to move to the next scheduled minimum content level:
2.1    (1) an American Society for Testing and Materials specification or equivalent federal
2.2standard exists for the next minimum diesel-biodiesel blend;
2.3    (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
2.4in this state from feedstock with at least 75 percent that is produced in the United States
2.5and Canada is equal to at least 50 percent of anticipated demand at the next minimum
2.6content level;
2.7    (3) adequate blending infrastructure and regulatory protocol are in place in order to
2.8promote biodiesel quality and avoid any potential economic disruption; and
2.9    (4) at least five percent of the amount of biodiesel necessary for that minimum
2.10content level will be produced from a biological resource other than an agricultural
2.11resource traditionally grown or raised in the state, including, but not limited to, algae
2.12cultivated for biofuels production, waste oils, and tallow.
2.13    The condition in clause (2) may be waived if the commissioner finds that, due to
2.14weather-related conditions, the necessary feed stock is unavailable.
2.15    The condition in clause (4) may be waived if the commissioners find that the use of
2.16these nontraditional feedstocks would be uneconomic under market conditions existing at
2.17the time notice is given under this paragraph.
2.18    (c) The commissioners of agriculture, commerce, and pollution control must consult
2.19with the biodiesel task force when assessing and certifying conditions in paragraph (b),
2.20and in general must seek the guidance of the biodiesel task force regarding biodiesel
2.21labeling, enforcement, and other related issues.
2.22    (d) During a period of biodiesel fuel shortage or a problem with biodiesel quality
2.23that negatively affects the availability of biodiesel fuel, the commissioner of commerce
2.24may temporarily suspend the minimum content requirement in subdivision 2 until there
2.25is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum
2.26content requirement.
2.27    (e) By February 1, 2012, and periodically thereafter, the commissioner of commerce
2.28shall determine the wholesale diesel price at various pipeline and refinery terminals in the
2.29region, and the biodiesel price determined after credits and incentives are subtracted at
2.30biodiesel plants in the region. The commissioner shall report wholesale price differences to
2.31the governor who, after consultation with the commissioners of commerce and agriculture,
2.32may by executive order adjust the biodiesel mandate if a price disparity reported by the
2.33commissioner will cause economic hardship to retailers of diesel fuel in this state. Any
2.34adjustment must be for a specified period of time, after which the percentage of biodiesel
2.35fuel to be blended into diesel fuel returns to the amount required in subdivision 2. The
2.36biodiesel mandate must not be adjusted to less than five percent.

3.1    Sec. 2. Minnesota Statutes 2012, section 239.77, subdivision 3, is amended to read:
3.2    Subd. 3. Exceptions Exempt equipment. (a) The minimum content requirements
3.3of subdivision 2 do not apply to fuel used in the following equipment:
3.4    (1) motors located at an electric generating plant regulated by the Nuclear
3.5Regulatory Commission;
3.6    (2) railroad locomotives;
3.7    (3) off-road taconite and copper mining equipment and machinery;
3.8    (4) off-road logging equipment and machinery; and
3.9    (5) vessels of the United States Coast Guard and vessels subject to inspection under
3.10United States Code, title 46, section 3301, subsection (1), (9), (10), (13), or (15); and
3.11    (6) generators tested and validated by an entity that designs and manufactures the
3.12generators for use in jurisdictions where biodiesel use is not required.
3.13    (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
3.14Regulatory Commission has approved the use of biodiesel fuel in motors at electric
3.15generating plants under its regulation.
3.16    (c) The minimum content requirements of subdivision 2 do not apply to Number 1
3.17diesel fuel sold or offered for sale during the months of October, November, December,
3.18January, February, and March.
3.19(d) This subdivision expires May 1, 2015.

3.20    Sec. 3. Minnesota Statutes 2012, section 239.77, is amended by adding a subdivision
3.21to read:
3.22    Subd. 3a. Number 1 diesel fuel exempt. (a) The minimum content requirements of
3.23subdivision 2 do not apply to Number 1 diesel fuel.
3.24(b) This subdivision expires May 1, 2020."
3.25Amend the title accordingly