Introduced Version
HOUSE BILL No. 1304
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 16-44-4.
Synopsis: Diesel fuel inspection program. Requires the state
department of health to establish an inspection program to enforce
compliance with the quality and performance standards adopted by the
American Society for Testing and Materials for petroleum diesel fuel,
biodiesel, and blended biodiesel. Establishes the diesel fuel inspection
fund. Imposes registration fees. Authorizes the state department of
health to impose civil penalties for certain violations.
Effective: July 1, 2008.
January 15, 2008, read first time and referred to Committee on Environmental Affairs.
Introduced
Second Regular Session 115th General Assembly (2008)
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HOUSE BILL No. 1304
A BILL FOR AN ACT to amend the Indiana Code concerning
health.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 16-44-4; (08)IN1304.1.1. -->
SECTION 1. IC 16-44-4 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]:
Chapter 4. Diesel Fuel Inspections
Sec. 1. To ensure uniformity in the quality of diesel fuel in
Indiana, this chapter establishes an inspection program to enforce
compliance with the quality and performance standards adopted
by the American Society for Testing and Materials for petroleum
diesel fuel, biodiesel, and blended biodiesel.
Sec. 2. As used in this chapter, "diesel fuel" refers to any of the
following:
(1) Petroleum diesel fuel.
(2) Biodiesel (as defined in IC 6-3.1-27-1).
(3) Blended biodiesel (as defined in IC 6-3.1-27-2).
Sec. 3. As used in this chapter, "diesel fuel outlet" means a
location in Indiana where diesel fuel is produced, sold at wholesale,
or sold at retail to the public.
Sec. 4. As used in this chapter, "petroleum diesel fuel" means a
petroleum product that:
(1) is intended for use or offered for sale as a fuel for engines
in which the fuel is injected into the combustion chamber and
ignited by pressure without the presence of an electric spark;
and
(2) meets the American Society for Testing and Materials
D975-07b Standard Specification for Diesel Fuel Oils.
Sec. 5. The state department shall enforce and administer this
chapter.
Sec. 6. A diesel fuel outlet may not possess diesel fuel that does
not comply with the quality and performance standards adopted
by the American Society for Testing and Materials for petroleum
diesel fuel, biodiesel, or blended biodiesel, whichever is
appropriate.
Sec. 7. (a) The state department shall establish a diesel fuel
inspection program that provides for the:
(1) inspection; and
(2) analysis;
of the diesel fuel possessed by a diesel fuel outlet.
(b) The state department shall adopt rules under IC 4-22-2 to
use the test standards and tolerances for petroleum diesel fuel and
biodiesel set forth in the Annual Book of ASTM Standards and
Supplements.
(c) Until quality and performance standards for blended
biodiesel are adopted by the American Society for Testing and
Materials, the state department may inspect only the petroleum
diesel fuel and biodiesel possessed by a diesel fuel outlet.
Sec. 8. The state department shall adopt rules under IC 4-22-2
to implement this chapter.
Sec. 9. In establishing the inspection program under this
chapter, the state department shall collect samples of diesel fuel
from diesel fuel outlets on a random basis for testing and analysis.
The state department may do the following:
(1) Obtain access to diesel fuel outlets during normal business
hours for the following purposes:
(A) Examination.
(B) Inspection.
(C) Investigation.
(2) Issue a stop sale order for violation of this chapter or for
diesel fuel found not to comply with the standards required by
this chapter.
(3) Rescind a stop sale order issued under subdivision (2) if
the diesel fuel is brought into full compliance with this
chapter.
(4) Revoke, suspend, or refuse to issue the registration of a
diesel fuel outlet that is not in full compliance with this
chapter.
Sec. 10. (a) A person who produces or sells diesel fuel at a diesel
fuel outlet shall do the following:
(1) Separately register each of the person's diesel fuel outlets
with the state department.
(2) Pay a registration fee established by the rules of the state
department adopted under section 11 of this chapter.
(b) The registration required under subsection (a) must include
the following:
(1) The name and address of the principal place of business of
the person registering the diesel fuel outlet.
(2) The name and address of the diesel fuel outlet.
(3) The name, brand, or trademark of the diesel fuel to be
produced or sold at the diesel fuel outlet.
Sec. 11. The state department shall adopt rules under IC 4-22-2
to establish an annual registration fee for each diesel fuel outlet
registered under this chapter.
Sec. 12. (a) The diesel fuel inspection fund is established for the
purpose of facilitating compliance with and enforcement of this
chapter. The state department shall administer the fund.
(b) The fund consists of:
(1) the fees paid under section 10 of this chapter; and
(2) any civil penalties deposited in the fund under section 16
of this chapter.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 13. A person violates this chapter if the person does any of
the following:
(1) Possesses diesel fuel that does not comply with the quality
and performance standards adopted by the American Society
for Testing and Materials for petroleum diesel fuel, biodiesel,
and blended biodiesel, whichever is appropriate.
(2) Submits:
(A) incorrect;
(B) misleading; or
(C) false;
information regarding the registration of a diesel fuel outlet.
(3) Hinders or obstructs the state department in the
enforcement of this chapter.
(4) Produces or markets diesel fuel that is not in compliance
with this chapter.
(5) Produces or markets diesel fuel at a diesel fuel outlet that
is not registered by the person under this chapter.
Sec. 14. A person who knowingly possesses petroleum diesel
fuel, biodiesel, or blended biodiesel that does not comply with the
quality and performance standards adopted by the American
Society for Testing and Materials for petroleum diesel fuel,
biodiesel, or blended biodiesel, whichever is appropriate, is subject
to a civil penalty of ten thousand dollars ($10,000) for each
occurrence described in this section.
Sec. 15. (a) The state department shall adopt rules under
IC 4-22-2 that establish a schedule of civil penalties that may be
levied for the following:
(1) Violations of section 13(2) through 13(5) of this chapter.
(2) Violations of the rules of the state department.
(b) A penalty included in the schedule of civil penalties adopted
under subsection (a) may not exceed five hundred dollars ($500)
per violation per day.
Sec. 16. The department shall deposit all civil penalties collected
under this chapter in the diesel fuel inspection fund established by
section 12 of this chapter.