The bill amends the Motor Fuels Quality Act by establishing a Renewable Fuels Fund within the state treasury, which will be managed by the state treasurer. The fund will receive money from various sources, and the treasurer is responsible for directing its investments and ensuring that any interest or earnings are credited to the fund. Notably, the bill specifies that the money in the fund at the end of the fiscal year remains in the fund and does not lapse to the general fund. The state treasurer will disburse funds quarterly to the relevant department, which is tasked with providing a summary of expenditures annually.

Additionally, the bill outlines the responsibilities of the department in administering the fund, which include promoting the production and use of alternative fuels, awarding grants to enhance alternative fuel production, developing motor fuel quality standards for renewable fuels, providing incentives to retailers selling renewable fuels, and promoting vehicles that can utilize these fuels. The definition of "renewable fuels" is expanded to include biodiesel, hydrogen fuel, and E85 fuel, with a specific definition provided for E85 fuel as a blend containing 70% to 85% denatured fuel ethanol and gasoline that meets certain specifications. The enactment of this bill is contingent upon the passage of Senate Bill No. 631.

Statutes affected:
Senate Introduced Bill: 290.645