SECTION 1. (1) There is created a Study Committee on the Potential Use of Biodiesel Fuel. The study committee shall study the need for mandated use of biodiesel and the benefits accruing to agriculture and the environment. The committee shall report to the Legislature no later than January 2, 2007.

(2) The study committee shall consist of the following members:

(a) The Chairman of the Senate Agriculture Committee and one (1) member of the Senate appointed by the Chairman;

(b) The Chairman of the House Agriculture Committee and one (1) member of the House of Representatives appointed by the Chairman;

(d) One (1) member appointed by the Mississippi Trucking Association;

(e) One (1) member appointed by the Mississippi Farm Bureau Federation;

(f) One (1) member appointed by the Executive Director of the Mississippi Development Authority; and

(g) One (1) member appointed by the Commissioner of Agriculture and Commerce.

(3) (a) Appointments shall be made within thirty (30) days of the effective date of this act.

(b) The Chairmen of the Senate and House Agriculture Committees shall serve as co-chairmen of the study committee.

(4) Legislative members shall be entitled to per diem, expense allowance and mileage as authorized for committee meetings when the Legislature is not in session.

(5) Any department, division, board, bureau, commission or agency of the state or any political subdivision thereof shall, at the request of the co-chairmen of the study committee, provide such assistance that will enable the study committee to properly carry out its duties.

SECTION 2. Section 69-51-3, Mississippi Code of 1972, is amended as follows:

69-51-3. For the purposes of this chapter, the following terms shall have the meanings ascribed to them herein unless the context clearly indicates otherwise:

(a) "Anhydrous alcohol" means fermentation ethyl alcohol derived from biomass, but that does not meet ASTM specifications or is not denatured and is shipped in bond for further processing.

(b) "Biomass" means any organic matter which is available on a renewable basis including agricultural crops and agricultural wastes and residues, wood and wood wastes and residues, and animal wastes.

(i) Meets all of the specifications in ASTM specification D 4806-88; and

(ii) Is denatured as specified in Code of Federal Regulations, Title 27, parts 20 and 21.

(d) "Ethanol plant" means a plant at which ethanol, anhydrous alcohol or wet alcohol is produced.

(e) "Wet alcohol" means agriculturally derived fermentation ethyl alcohol having a purity of at least fifty percent (50%) but less than ninety-nine percent (99%).

(f) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats and that meets American Society for Testing and Materials Specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

SECTION 3. The following shall be codified as Section 69-51-7, Mississippi Code of 1972:

      69-51-7.  (1)  (a)  Except as otherwise provided in this section, all diesel fuel produced and sold or offered for sale in Mississippi for use in internal combustion engines must contain at least two percent (2%) biodiesel fuel oil by volume.

            (b)  The mandate in subsection (1)(a) is effective from and after the date that the conditions in subparagraphs (i) and (ii) have been met:

                  (i)  Thirty (30) or more days have passed since the Commissioner of Agriculture and Commerce publishes notice that annual capacity for the production of biodiesel fuel oil in Mississippi exceeds eight million (8,000,000) gallons; and

                  (ii)  Eighteen (18) months have passed since the Commissioner of Agriculture publishes notice in the state register that a federal action on taxes imposed, tax credits, or otherwise, creates a reduction in the price of Two Cents (2¢) or more per gallon on taxable fuel that contains at least two percent (2%) biodiesel fuel oil and is sold in this state.

      (2)  (a)  The minimum content requirement of subsection (1) does not apply to fuel used in the following equipment:

                  (i)  Motors located at an electric generating plant regulated by the Nuclear Regulatory Commission;

                  (ii)  Railroad locomotives; and

                  (iii)  Off-road taconite and copper mining equipment and machinery.

(b) The exemption in subsection (2)(a)(i) expires thirty (30) days after the Nuclear Regulatory Commission has approved the use of biodiesel fuel in motors at electric generating plants under its regulation.

(3) A refinery or terminal shall provide, at the time diesel fuel is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest to the person who receives the fuel. For biodiesel-blended products, the bill of lading or shipping manifest must disclose biodiesel content, stating volume percentage, gallons of biodiesel per gallons of petroleum diesel base-stock, or an American Society for Testing and Materials (ASTM) "Bxx" designation where "xx" denotes the volume percent biodiesel included in the blended product. This subsection does not apply to sales or transfers of biodiesel-blend stock between refineries, between terminals, or between a refinery and a terminal.

(4) The Commissioner of Agriculture may issue a stop-sale order for biodiesel that does not meet the standards under this act, or if supplies are interrupted due to natural disaster or if production falls below mandate needs. The Commissioner of Agriculture may adopt rules and regulations to implement and enforce these requirements.

SECTION 4. This act shall take effect and be in force from and after July 1, 2006.


X (SIGNED)	X (SIGNED)
Cindy Hyde-Smith	Joseph L. Warren

X (SIGNED)	X (SIGNED)
Perry Lee	Preston E. Sullivan

(NOT SIGNED)	X (SIGNED)
Gary Jackson	Blaine Eaton