2018 Upper Midwest Convenience Store and Energy Convention

April 9-11, 2018

Registration is OPEN

Exhibit, Sponsor, or Attend the Largest Show for Petroleum Marketers in the Upper Midwest. An ambitious agenda that includes the award winning show floor, great speakers, workshops and great fun and networking. Check it out at UMCS.Energy.  Learn more

Notice of Biodiesel Outage and Waiver at Magellan Terminal–Rochester (Eyota), MN

The Magellan terminal located in Rochester(Eyota), Minnesota has notified the Minnesota Department of Commerce Weights and Measures Division that the terminal will not have biodiesel available for loading at the rack starting at 7:00 AM, March 12, 2018. 

Retailers may be granted a waiver under  Minnesota Statutes §239.80 on diesel loads bought from Magellan terminal in Rochester (Eyota) during the biodiesel outage if:

1. The retailer, or its purchasing agent, was already an existing customer of Magellan terminal in Rochester (Eyota) at the time of the biodiesel outage;
2. The retailer is obligated to meet the  requirements of Minnesota Statutes §239.77  because the retailer sells diesel fuel for use in internal combustion engines;  and
3. The retailer had insufficient time to arrange for alternative sources of biodiesel to meet statutory requirements.

The Weights and Measures Division will determine a retailer’s eligibility for this waiver through bills of lading or other information obtained by the Weights and Measures Division from the retailer and from Magellan terminal Rochester (Eyota) under the auditing authority granted in Minnesota Statutes §§239.011, 239.75, and 239.753.  

This waiver will remain in effect until 7:00 AM, March 21, 2018 or until biodiesel is restored at the Magellan – Rochester (Eyota) loading rack, whichever comes first.

Diesel sold for use in combustion engines under any conditions other than those outlined in a waiver granted by the  Weights and Measures Division must have the minimum amount of biodiesel required under Minnesota Statutes §239.77, or retailers may face penalties under Minnesota Statutes §239.80.

Update ELD Rule

As you know, implementation of the ELD rule is a top FMCSA priority.  It represents a significant change for a large portion of the industry and a large focus of discussion in Washington DC and nationally. 

To ease the transition to ELDs, FMCSA’s partners at the Commercial Vehicle Safety Alliance (CVSA) have previously announced a delay in placing non-ELD compliant vehicles out-of-service until April 1, 2018, which will allow continued time for carriers and law enforcement to adjust to the new technology.  In addition, FMCSA is announcing that violations cited during the period of December 18, 2017 through April 1, 2018, will not count against a carrier’s Safety Measurement System (SMS) scores.

In the coming weeks, FMCSA will publish guidance for comment relating to the application of the agricultural commodity hours-of-service exemption. FMCSA will also provide guidance on the existing 150 air-miles hours-of-service exemption in order to provide clarity to enforcement and industry, and will consider comments received before publishing final guidance.

Finally, FMCSA will publish guidance on another hours-of-service issue, known as Personal Conveyance, which has become more relevant due to the upcoming ELD rule enforcement.  The goal of these guidance documents is to take input on their application and develop a consistent and uniform application of the provision.

B-20 Mandate

We have had a few calls to the Association office regarding the sale of B-20 in Minnesota.  On April 30, 2014 Governor Mark Dayton signed a bill that modified the biodiesel mandate chapter 239.77. The following should help you understand the changes and what actions you will need to take to sell biodiesel at retail…

 
• On April 1, 2018 the bio content requirement is 10%.

• On May 1, 2018 through September 30, 2018, considered warm months, the biodiesel content must be at least 20% biodiesel fuel by volume going forward.

• Future years, April 1, will start  the bio content of 20%

• During the cold weather months, October 1 through March 31, the biodiesel mandate reverts back to at least 5% biodiesel fuel by volume.

• Motors located at an electric generating plant regulated by the Nuclear Regulatory Commission.  Railroad locomotives.

• Off-road taconite and copper mining equipment and machinery.

• Off-road logging equipment and machinery.

• Vessels of the United States Coast Guard and vessels subject to inspection under United States Code, title 46, section 3301.

• Generators tested and validated by an entity that designs and manufactures the generators for use in jurisdictions where biodiesel use is not required.

• The exemptions listed above do not have a sunset date.

• Number 1 diesel fuel is exempt year round until May 21, 2020.

• The Federal Trade Commission sticker (see label) is required at the point-of-sale on all retail diesel fuel pumps.