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terminals and associated underground and aboveground tanks, connected or separate, from which petroleum products are withdrawn from bulk and delivered into a cargo tank or barge used to transport those products.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. + } ----------