SESSION OF 2000



SUPPLEMENTAL NOTE ON

SUBSTITUTE FOR SENATE BILL NO. 469



As Recommended by Senate Committee on

Energy and Natural Resources





Brief (1)



Sub. for SB 469 would make it unlawful to deliver to any service station in Kansas motor-vehicle fuel containing methyl tertiary-butyl ether (MTBE) greater than 0.5 percent by volume on July 1, 2002. On and after July 1, 2003, no motor-vehicle fuels could be delivered at the pump to any motor vehicle in Kansas containing MTBE greater than 0.5 percent by volume.



The bill would require that on and after July 1, 2002, the motor-vehicle fuel retailer provide, at the time of delivery of fuel, a declaration of the MTBE content, by volume percent, in the motor-vehicle fuel delivered.



The bill also would require that on and after July 1, 2001 that a notice stating "This fuel contains MTBE" be displayed on each dispenser from which motor-vehicle fuel containing MTBE in excess of the detection limit of the approved test method is sold to the public. The bill would establish the size and placement of the notice.



The Secretary of the Kansas Department of Health and Environment (KDHE) or the Director of the Division of Environment, upon a finding that a person has knowingly and willingly violated the bill, could impose a penalty not to exceed $10,000. Each day would be deemed a separate violation. No penalty would be imposed except after notice and opportunity for hearing. Nothing in the bill would be construed to abridge, limit, or otherwise impair the right of any person to damages or other relief on account of injury to person or property and to maintain any action or other appropriate proceeding.



The entire bill's implementation would be made contingent upon the acquisition of a waiver from the US Environmental Protection Agency (EPA) granting the prohibition of MTBE by KDHE.





Background



At the hearing on the bill, the Director of the Division of Environment of KDHE appeared on the bill for informational purposes. This testimony indicated that the state would need a waiver from EPA in order to prohibit the sale of MTBE in motor-vehicle fuel. Proponents of the bill were representatives of the Kansas Department of Agriculture and the Kansas Farm Bureau. Written testimony in support of the bill was distributed from a spokesperson from the Kansas Grain Sorghum Producer's Association and the Kansas Corn Growers Association. A representative of the American Petroleum Institute appeared in opposition to the bill.



The Senate Committee on Energy and Natural Resources adopted a substitute bill.



The fiscal note on the original bill indicates that KDHE would have to increase enforcement efforts. According to the note six new Environmental Scientist positions would be necessary and, in addition, a new attorney position. The cost of these positions would be $306,833. Additional laboratory analysis of fuel samples would cost $153,165 according to the fiscal note on the original bill. The note indicates that these expenditures would come from the Petroleum Trust Fund.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html