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Kentucky One-Pager (State's Fuel Quality Regulation)
  Department
KY Dept of Agriculture
  NCWM Region
SWMA
 
  Primary Contact
Lanny Arnold
  Last Modified 02/17/09 04:53pm  
  Phone
(502) 573-0282 x-228
 
  Email
lanny.arnold@ky.gov
 
  What's needed for a
successful program?
 KY Biodiesel Production and Blending Tax Credit: Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel (B100) produced or $1.00 per gallon of biodiesel used in the blending process; re-blending of blended biodiesel does not qualify. The total amount of credit for all biodiesel producers may not exceed the annual biodiesel tax credit cap of $5 million; beginning January 1, 2009, the biodiesel tax credit cap is expanded to $10 million per taxable year. For the purpose of this credit, biodiesel must meet ASTM specification D6751. (Reference Kentucky Revised Statutes 141.422 to 141.424)  
AUTHORITY
  Fuel Authority
Regulatory (state regulations); Statutory (enacted legislation)
 
  Statutory/Regulatory Citation
Program is responsible for the testing of gasoline and diesel fuel to ensure that the quality of the fuel meets Kentucky law and the ASTM standards. Retail facilities which sell gasoline and/or diesel fuel to the general public must be registered annually. Law: Section for Motor Fuel Inspection and Testing - KRS 363.900 to 363.908. Regulation: Section for Motor Fuel Inspection & Testing - 302 KAR 79:010 Section for Motor Fuel Civil Penalties - KRS 363.908 Inspections are conducted routinely at sites across the state and when a consumer complaint is received. All retail facilities which sell gasoline and/or diesel fuel to the general public must be registered annually.
 
ADOPTED FUEL SPECIFICATIONS
  Fuels Currently Regulated
Biodiesel-Blends_yes; B100-Biodiesel_yes; Diesel Fuel_yes
 
  Fuel Specifications
B6-19_other; B1-B5_ASTM D975; B100_ASTM D6751; PetroDiesel_ASTM D975
 
  Other Specifications B6-B20 ASTM D7467  
  If no spec - plan to adopt  
  Process to Adopt Specifications
Legislative Process; Administrative Rulemaking
 
  ASTM-Rev Adopted
not automatic - use earlier revision, til law / regulations revised
 
TESTING PROGRAMS
  Proactive Tests
Petroleum Diesel; Biodiesel Blends (Bxx)
 
  Reactive Test Circumstance
Routinely tested across the state and upon customer complaint.
 
  Fuel Test Performed
Visual; Acid Number; Water & Sediment; Density; Cloud Point; Flash Point; Glycerine; Carbon Residue; Cetane; Copper Strip; Phosphorus; Stability; Sulfated Ash; Sulfur; Total Ca / Mg; Total Na / K; Vacuum Distillation; Viscosity
 
  Where Sampled
Retailer
 
  Where Tested
Out-Sourced
 
  Penalties
Stop Sale and issuance of fines. Fuel to be upgraded to meet specs. Fines are calculated at number of gallons in storage x price per gallon and a factor x.25
 
REPORTING
  How to Report
PRODUCT INDENTIFICATION REQUIREMENTS
 
  Dispenser Labeling
 
NOTES