AN ACT DEFINING ETHANOL-BLENDED FUEL; ELIMINATING THE REQUIREMENT THAT THE OPERATOR OF A STATE-OWNED MOTOR VEHICLE REPORT HAVING USED ETHANOL-BLENDED FUEL; ELIMINATING THE REQUIREMENT THAT A STATE AGENCY RETAIN RECORDS OF ETHANOL USE IN THE VEHICLES OWNED OR OPERATED BY ITS EMPLOYEES; ELIMINATING THE REQUIREMENT THAT THE LEGISLATIVE AUDITOR REVIEW ETHANOL PURCHASE RECORDS; AND AMENDING SECTION 2-17-414, MCA.

WHEREAS, agriculture is a vital component of Montana's economy; and

WHEREAS, Governor Racicot has initiated Vision 2005, challenging a group of Montanans to devise strategies to increase the value of the state's raw agricultural products, specifically grain and wood; and

WHEREAS, raw agricultural materials, such as grain and wood, can be processed into high-octane fuel called ethanol; and

WHEREAS, ethanol is a clean, efficient, high-performance octane enhancer that replaces lead in motor fuel; and

WHEREAS, widespread use of ethanol could result in reducing the United States' reliance on imported oil; and

WHEREAS, eliminating the requirement that ethanol use in state vehicles be reported will reduce paperwork, making it easier for state employees to use ethanol-blended fuel, thus creating a larger market for the product and encouraging the establishment of ethanol production facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 2-17-414, MCA, is amended to read:

"2-17-414. State vehicles to use ethanol-blended fuel -- definition . (1) A department, agency, institution, office, board, and commission of the executive, legislative, and judicial branches of state government and a state institution of higher education owning or operating a motor vehicle capable of burning ethanol-blended fuel shall take all reasonable steps to ensure that the operators of those vehicles use ethanol-blended fuel in the vehicles if ethanol-blended fuel is commercially available within the operating area of the vehicle and is priced competitively with the motor vehicle fuel otherwise used by the vehicle.

(2) For purposes of this section, "ethanol-blended fuel" means a fuel mixture that is 90% gasoline and 10% anhydrous ethanol produced from agricultural products, including grain and wood or wood products, and that is used for the purpose of effectively and efficiently operating internal combustion engines .

(3) An entity subject to the requirements of subsection (1) may not take any disciplinary, judicial, administrative, or other adverse action against the operator of a motor vehicle for failing to purchase ethanol-blended fuel for the operation of the motor vehicle.

"

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I hereby certify that the within bill,

HB 0023, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 23

INTRODUCED BY S. KITZENBERG

AN ACT DEFINING ETHANOL-BLENDED FUEL; ELIMINATING THE REQUIREMENT THAT THE OPERATOR OF A STATE-OWNED MOTOR VEHICLE REPORT HAVING USED ETHANOL-BLENDED FUEL; ELIMINATING THE REQUIREMENT THAT A STATE AGENCY RETAIN RECORDS OF ETHANOL USE IN THE VEHICLES OWNED OR OPERATED BY ITS EMPLOYEES; ELIMINATING THE REQUIREMENT THAT THE LEGISLATIVE AUDITOR REVIEW ETHANOL PURCHASE RECORDS; AND AMENDING SECTION 2-17-414, MCA.