MN Commerce Department

Notice of Biodiesel Outage and Waiver at Magellan Terminal–Mankato, MN

 JULY 7, 2017

The Magellan terminal located in Mankato, Minnesota has notified the Minnesota Department of Commerce Weights and Measures Division that the terminal has not had biodiesel available for loading at the rack since July 6, 2017 at 7:54 PM.

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

1. The retailer, or its purchasing agent, was already an existing customer of Magellan terminal in Mankato 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 Mankato under the auditing authority granted in Minnesota Statutes §§239.011, 239.75, and 239.753.

This waiver will remain in effect until July 16, 2017 at 7:54 PM or until biodiesel is restored at the Magellan – Mankato 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.

B-10 Mandate

We have had a few calls to the Association office regarding the sale of B-10 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, 2017 through September 30, 2017, considered warm months, the biodiesel content must be at least 10% biodiesel fuel by volume going forward.
•    During the cold weather months, October 1 through March 31, the biodiesel mandate reverts back to at least 5% biodiesel fuel by volume.
•    On April 1, 2018 through September 30, 2018 the biodiesel mandate moves to 20% biodiesel fuel by volume.
•    #2 Biodiesel Exemptions include…
•    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 below) is required at the point-of-sale on all retail diesel fuel pumps.