H*3707(Rat #0160, Act #0147 of 2010)  General Bill, By T.R. Young, Cato, 
Cobb-Hunter, Toole, Ott, Cooper, Gambrell, Bowen, Agnew, McLeod, J.H. Neal, 
Gunn, Hayes, Stewart, Thompson, White, Duncan, D.C. Moss, H.B. Brown, Knight, 
Frye, Spires, Neilson, Vick, Hutto, Sellers and Rice

Similar(S 612)
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 39-41-235 SO AS TO REQUIRE MOTOR FUEL TERMINALS TO OFFER FOR SALE ALL GRADES
 OF PETROLEUM PRODUCTS SUITABLE FOR SUBSEQUENT BLENDING WITH ETHANOL; TO
 REQUIRE MOTOR FUEL TERMINALS TO OFFER FOR SALE ALL GRADES OF DIESEL FUEL
 SUITABLE FOR BLENDING TO PRODUCE BIODIESEL OR BIODIESEL BLENDS; TO PROHIBIT
 THE SALE OF AN UNBLENDED PRODUCT WITHOUT NECESSARY ADDITIVES; TO PROHIBIT THE
 DENIAL OF A DISTRIBUTOR OR RETAILER FROM BEING THE BLENDER OF RECORD; TO
 REQUIRE THE UTILIZATION OF THE RENEWABLE IDENTIFICATION NUMBER SYSTEM; TO
 DECLARE A VIOLATION OF THIS SECTION AN UNFAIR TRADE PRACTICE AND TO PROVIDE A
 PENALTY; TO REQUIRE WHOLESALER PURCHASERS TO ENSURE THEIR ACTIVITIES RESULT IN
 PRODUCTS THAT MEET CERTAIN STANDARDS; TO PROVIDE FOR LIABILITY FOR DAMAGES
 ARISING FROM THE BLENDING OF GASOLINE, GASOLINE BLENDING STOCK, OR DIESEL; AND
 TO REQUIRE NOTICE OF THE ENTITY THAT PERFORMED THE BLENDING IN CERTAIN
 LOCATIONS. - ratified title

   03/11/09  House  Introduced and read first time HJ-12
   03/11/09  House  Referred to Committee on Agriculture, Natural
                     Resources and Environmental Affairs HJ-13
   03/26/09  House  Member(s) request name added as sponsor: Duncan
   04/21/09  House  Member(s) request name added as sponsor:
                     D.C.Moss, H.B.Brown
   04/22/09  House  Member(s) request name added as sponsor: Knight
   04/22/09  House  Committee report: Favorable Agriculture, Natural
                     Resources and Environmental Affairs HJ-5
   04/23/09  House  Member(s) request name added as sponsor: Frye,
                     Spires, Neilson
   04/23/09  House  Requests for debate-Rep(s). Cobb-Hunter, Hiott,
                     Umphlett, Duncan, Jefferson, Sandifer, Ott,
                     Sellers, MA Pitts, Crawford, Erickson, Gambrell,
                     Cooper, Skelton, Mitchell, TR Young, JR Smith,
                     and DC Smith HJ-245
   04/28/09  House  Member(s) request name added as sponsor: Vick
   04/29/09  House  Member(s) request name added as sponsor: Hutto,
                     Sellers, Rice
   04/29/09  House  Read second time HJ-240
   04/29/09  House  Roll call Yeas-107  Nays-7 HJ-244
   04/30/09  House  Read third time and sent to Senate HJ-73
   05/05/09  Senate Introduced and read first time SJ-10
   05/05/09  Senate Referred to Committee on Agriculture and Natural
                     Resources SJ-10
   05/07/09  Senate Polled out of committee Agriculture and Natural
                     Resources SJ-19
   05/07/09  Senate Committee report: Favorable Agriculture and
                     Natural Resources SJ-19
   02/25/10  Senate Amended SJ-48
   02/25/10  Senate Read second time SJ-48
   02/26/10         Scrivener's error corrected
   03/11/10  Senate Amended SJ-12
   03/11/10  Senate Read third time and returned to House with
                     amendments SJ-12
   03/15/10         Scrivener's error corrected
   03/23/10  House  Concurred in Senate amendment and enrolled HJ-57
   03/23/10  House  Roll call Yeas-100  Nays-8 HJ-57
   03/25/10         Ratified R 160
   03/31/10         Vetoed by Governor
   04/15/10  House  Veto overridden by originating body Yeas-91 
                     Nays-2 HJ-51
   04/15/10  Senate Veto overridden Yeas-34  Nays-7 SJ-37
   05/03/10         Effective date See Act for Effective Date
   05/03/10         Act No. 147

(A147, R160, H3707)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-41-235 SO AS TO REQUIRE MOTOR FUEL TERMINALS TO OFFER FOR SALE ALL GRADES OF PETROLEUM PRODUCTS SUITABLE FOR SUBSEQUENT BLENDING WITH ETHANOL; TO REQUIRE MOTOR FUEL TERMINALS TO OFFER FOR SALE ALL GRADES OF DIESEL FUEL SUITABLE FOR BLENDING TO PRODUCE BIODIESEL OR BIODIESEL BLENDS; TO PROHIBIT THE SALE OF AN UNBLENDED PRODUCT WITHOUT NECESSARY ADDITIVES; TO PROHIBIT THE DENIAL OF A DISTRIBUTOR OR RETAILER FROM BEING THE BLENDER OF RECORD; TO REQUIRE THE UTILIZATION OF THE RENEWABLE IDENTIFICATION NUMBER SYSTEM; TO DECLARE A VIOLATION OF THIS SECTION AN UNFAIR TRADE PRACTICE AND TO PROVIDE A PENALTY; TO REQUIRE WHOLESALER PURCHASERS TO ENSURE THEIR ACTIVITIES RESULT IN PRODUCTS THAT MEET CERTAIN STANDARDS; TO PROVIDE FOR LIABILITY FOR DAMAGES ARISING FROM THE BLENDING OF GASOLINE, GASOLINE BLENDING STOCK, OR DIESEL; AND TO REQUIRE NOTICE OF THE ENTITY THAT PERFORMED THE BLENDING IN CERTAIN LOCATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Legislative findings

SECTION    1.    The General Assembly finds that the use of blended fuels reduces the dependence on imported oil and, therefore, the protection thereof is reasonable and necessary to accomplish this legitimate public purpose. The General Assembly further finds that promoting and protecting the use of blended fuels in order to reduce the dependence on imported oil protects a basic societal interest. The General Assembly also finds that it is in the best societal interest not to restrict or prevent the blending of ethanol or biodiesel by distributors or retailers. Therefore, any provision of any contract that is executed, modified, renewed, or amended on or after the effective date of this act that would restrict or prevent a distributor or retailer from blending is contrary to the public purpose of this act and is deemed void.

Sale of all grades of petroleum products and diesel fuel that are suitable for blending; sale of unblended product without necessary additives; blender of record status and registration; Renewable Identification Number system used; violation deemed unfair trade practice; wholesaler responsibilities; liability for damages arising from blending; notice of blending entity

SECTION    2.    Article 1, Chapter 41, Title 39 of the 1976 Code is amended by adding:

"Section 39-41-235.    (A)    Regardless of other products offered, every terminal, as defined in Section 12-28-110(56), located within the State must offer for sale all grades of petroleum products that are not already preblended with ethanol and that are suitable for subsequent blending of the product with ethanol.

(B)    Regardless of other products offered, every terminal, as defined in Section 12-28-110(56), located within the State must offer for sale all grades of diesel fuel that are not already preblended to produce biodiesel or a biodiesel blend and that are suitable for subsequent blending to produce biodiesel or biodiesel blends.

(C)    A terminal shall not offer for sale an unblended product that omits any additive found in a product preblended with ethanol. A terminal shall not offer for sale an unblended product that does not contain a comparable amount of any additive found in a product preblended with ethanol.

(D)    No person or entity shall take an action to deny a distributor, as defined in Section 12-28-110(17), or retailer, as defined in Section 12-28-110(52) who is doing business in this State and who has registered with the Internal Revenue Service on Form 637 (M) from being the blender of record afforded them by the acceptance by the Internal Revenue Service of Form 637 (M).

(E)    A distributor or retailer and a refiner must utilize the Renewable Identification Number (RIN) system. Nothing in this section may be construed to imply a market value for the RINs.

(F)    A violation of this article is deemed an unfair trade practice, and each violation is a separate offense. A person or entity violating the provisions of this article is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars for each violation.

(G)    Wholesalers purchasing gasoline, gasoline blending stock, or diesel are responsible for ensuring that their activities result in gasolines and diesels that meet the standards promulgated by the Commissioner of Agriculture. Refiners, suppliers, and permissive suppliers shall not be liable for fines, penalties, injuries, or damages arising out of the subsequent blending of gasoline, gasoline blending stock, or diesel pursuant to this section. An entity that does not blend the product at issue has no duty with respect to blending and shall not be liable for fines, penalties, injuries, or damages arising out of blending that does not meet those standards.

(H)    An entity that purchases an unblended product and subsequently blends that product with ethanol or biodiesel shall provide notice to the purchasing entity's consumers, at the pump or another prominent location near the pump, identifying the entity that performed the blending."

Severability clause

SECTION    3.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Savings clause

SECTION    4.    The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

Time effective

SECTION    5.    (A)    Section 39-41-235(A) and Section 39-41-235(B) as contained in SECTION 2 of this act take effect sixty days after approval of the Governor.

(B)    Except as provided in subsection (A) of this SECTION, this act takes effect upon approval of the Governor.

Ratified the 25th day of March, 2010.

Vetoed by the Governor -- 3/31/2010.

Veto overridden by House -- 4/15/2010.

Veto overridden by Senate -- 4/15/2010.