68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2589

                         Senate Bill 616

Sponsored by COMMITTEE ON TRANSPORTATION (at the request of
  Automobile Club of Oregon)


                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes motor vehicle fuel quality testing program
administered by State Department of Agriculture.
  Creates Motor Vehicle Fuel Inspection Program Account.
Appropriates moneys in account to testing program.
  Imposes civil penalty for violation of program standards.

                        A BILL FOR AN ACT
Relating to motor vehicle fuel quality standards; creating new
  provisions; amending ORS 561.144 and 646.905; and appropriating
  money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 646.905 is amended to read:
  646.905. As used in ORS 646.910 to 646.920:
  (1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
   { +  (2) 'Bulk facility' means a facility, including pipeline
terminals, refinery terminals, rail and barge terminals and
associated underground and aboveground tanks, connected or
separate, from which petroleum products are withdrawn from bulk
and delivered into a cargo tank or barge used to transport those
products. + }
    { - (2) - }   { + (3) + } 'Co-solvent' means an alcohol other
than methanol which is blended with either methanol or ethanol or
both to minimize phase separation in gasoline.
   { +  (4) 'Dealer' means any motor vehicle fuel retail dealer,
nonretail dealer or wholesale dealer.
  (5) 'Director' means the Director of Agriculture. + }
    { - (3) - }   { + (6) + } 'Ethanol' means ethyl alcohol, a
flammable liquid having the formula C2H5OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
    { - (4) - }   { + (7) + } 'Gasoline' means any fuel sold for
use in spark ignition engines whether leaded or unleaded.
    { - (5) - }   { + (8) + } 'Methanol' means methyl alcohol, a
flammable liquid having the formula CH3OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
   { +  (9) 'Motor vehicle fuel' means gasoline, diesel or any
other liquid product used for the generation of power in an
internal combustion engine, except aviation jet fuels, liquefied
petroleum or natural gases. + }
    { - (6) - }   { + (10) + } 'Motor vehicles' means all
vehicles, vessels, watercraft, engines, machines or mechanical
contrivances that are propelled by internal combustion engines or
motors.
   { +  (11) 'Petroleum product' means a product that is obtained
from distilling and processing crude oil and that is capable of
being used as a fuel for the propulsion of a motor vehicle or
aircraft, including motor gasoline, alcohol-blended fuels,
aviation gasoline, kerosene, distillate fuel oil and number 1 and
number 2 diesel. 'Petroleum product' does not include
naphtha-type jet fuel, kerosene-type jet fuel, products distilled
for use in chemical manufacturing or feedstock of that
manufacturing, or fuel sold to vessels engaged in interstate or
foreign commerce. + }
    { - (7) - }   { + (12) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which
  { - gasoline - }   { + motor vehicle fuel + } is sold or
offered for sale to the public.
    { - (8) - }   { + (13) + } 'Wholesale dealer' means any
person engaged in the sale of   { - gasoline - }   { + motor
vehicle fuel + } if the seller knows or has reasonable cause to
believe the buyer intends to resell the
  { - gasoline - }   { + motor vehicle fuel + } in the same or an
altered form to another.
   { +  (14) 'Withdrawal from bulk' means the removal of a
petroleum product from a bulk facility for delivery directly into
a cargo tank or a barge to be transported to another location
other than another bulk facility for use or sale in this
state. + }
  SECTION 2.  { + Sections 3 to 9 of this Act are added to and
made a part of ORS 646.910 to 646.920. + }
  SECTION 3.  { + Notwithstanding any other provision of ORS
646.910 to 646.920, it is unlawful for:
  (1) A dealer to sell or offer for sale any motor vehicle fuel
that violates any rule or standard adopted pursuant to section 9
of this 1995 Act.
  (2) A dealer to sell or offer for sale any motor vehicle fuel
from a dispensing device that does not have a sign displayed that
accurately identifies the motor vehicle fuel being dispensed from
that device in violation of section 4 of this 1995 Act. + }
  SECTION 4.  { + A dealer who sells or offers for sale any motor
vehicle fuel shall conspicuously display a sign on or near each
dispensing device, using descriptive commercial terms, that
accurately identifies the motor vehicle fuel being dispensed from
that device. The sign shall be posted in such a manner as the
Director of Agriculture determines will adequately inform the
purchaser of the motor vehicle fuel's identity. + }
  SECTION 5.  { + (1) The Director of Agriculture may test motor
vehicle fuel for the purpose of inspecting the motor vehicle fuel
supply of any service station, business or other establishment
that sells or offers for sale, or distributes, transports, hauls,
delivers or stores motor vehicle fuel, for compliance with the
fuel quality standards prescribed in section 9 of this 1995 Act.
  (2) The director or the director's authorized agent shall have
access during normal business hours to all places where motor
vehicle fuel is marketed for the purpose of examination,
inspection and investigation of the establishment's motor vehicle
fuel supply, shall collect or cause to be collected samples of
such motor vehicle fuel and shall test or analyze such samples
for compliance with fuel quality standards prescribed in section
9 of this 1995 Act. + }
  SECTION 6.  { + (1) The Director of Agriculture may issue a
stop-use order, hold order or removal order for any motor vehicle
fuel offered or exposed for sale, or in the process of delivery
or susceptible to commercial use, that is found not to be in
compliance with the motor vehicle fuel quality standards
prescribed in section 9 of this 1995 Act. The director may
rescind the stop-use, hold or removal order if the fuel is
brought into full compliance with vehicle fuel quality standards.
  (2) No person shall use, remove from the premises specified or
fail to remove from the premises specified any motor vehicle fuel
in a manner contrary to the terms of a stop-use order, hold order
or removal order issued under authority of this section. + }
  SECTION 7.  { + (1) Each operator of a bulk facility and each
person who imports petroleum products into this state shall keep
at the person's registered place of business complete and
accurate records of any petroleum products sold, purchased by or
brought into or caused to be brought into the place of business.
  (2) The Director of Agriculture, upon oral or written
reasonable notice, may make such examinations of the books,
papers, records and equipment required to be kept under this
section as may be necessary to carry out the provisions of
sections 3 to 8 of this 1995 Act. + }
  SECTION 8.  { + (1) In addition to any other penalty provided
for by law, any person who violates a provision of section 3, 4
or 6 of this 1995 Act or any rule or order adopted or entered
under section 6 or 9 of this 1995 Act shall incur a civil penalty
not to exceed $15,000.
  (2) For the purposes of this section, each day of violation is
a separate offense and the penalties provided in subsection (1)
of this section apply to each such offense.
  (3) Any civil penalty imposed under subsection (1) of this
section shall be established, imposed, collected and appealed in
the same manner prescribed in ORS 616.900.
  (4) Penalties recovered pursuant to this section shall be
credited to the Motor Vehicle Fuel Inspection Program Account in
the Department of Agriculture Service Fund. + }
  SECTION 9.  { + In accordance with any applicable provision of
ORS 183.310 to 183.550, the Director of Agriculture shall adopt
rules to carry out the provisions of sections 3 to 8 of this 1995
Act.  Such rules may include, but are not limited to, motor
vehicle fuel grade advertising, pump grade labeling, quality
standards and identification requirements for motor vehicle
fuels. In adopting motor vehicle fuel quality standards, the
director shall consider motor vehicle fuel standards set forth in
the annual book of standards for the American Society for Testing
and Materials. + }
  SECTION 10. ORS 561.144 is amended to read:
  561.144. (1) The State Treasurer shall establish a Department
of Agriculture Service Fund which shall be a trust fund separate
from the General Fund and included under ORS 293.115 (6), and
which shall not be subject to ORS 293.105 and 293.110. The
department shall deposit all license and service fees paid to it
under the provisions of the statutes identified in subsection (3)
of this section in the Department of Agriculture Service Fund.
The State Treasurer is the custodian of this trust fund which
shall be deposited by the treasurer in such depositories as are
authorized to receive deposits of the General Fund, and which may
be invested by the treasurer in the same manner as authorized by
ORS 293.701 to 293.820.
  (2) Notwithstanding ORS 293.140, interest received on deposits
credited to the Department of Agriculture Service Fund shall
accrue to and become a part of the Department of Agriculture
Service Fund.
  (3) The license and service fees subject to this section are
those described in ORS 561.400, 571.057, 571.063, 571.145,
583.004, 583.046, 583.445, 583.510, 583.610, 585.050, 586.270,
586.580, 586.650, 596.030, 596.311, 599.235, 599.269, 599.406,
599.610, 600.030, 601.040, 602.090, 603.025, 603.075, 616.706,
618.115, 618.136, 619.031, 621.072, 621.166, 621.266, 621.297,
621.335, 621.730, 622.080, 625.180, 628.240, 632.211, 632.336,
632.425, 632.600, 632.720, 632.730, 632.741, 632.940, 632.945,
633.015, 633.029, 633.361, 633.460, 633.680, 633.700, 633.720,
634.016, 634.116, 634.122, 634.126, 634.132, 634.136, 634.212 and
635.030.
   { +  (4) The Motor Vehicle Fuel Inspection Program Account is
created in the Department of Agriculture Service Fund.
Notwithstanding any other provision of law, all moneys in the
account are appropriated continuously to the State Department of
Agriculture for the administration of sections 3 to 9 of this
1995 Act. + }
  SECTION 11.  { + The Director of Agriculture shall make an
appropriate grant application for funds to administer the motor
vehicle fuel inspection program from moneys available to the
Attorney General by court order in the petroleum products
antitrust litigation (M.D.L.-150). All moneys received by the
Director of Agriculture pursuant to this section shall be paid
into the Motor Vehicle Fuel Inspection Program Account. + }
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