as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 03:32pm
A bill for an act
relating to electric vehicles; establishing preference for purchase of electric vehicles
for state fleet; requiring certification of training of motor vehicle dealer employees;
providing rebates for electric vehicle purchases; requiring certain utilities to file
plans with the Public Utilities Commission to promote electric vehicles; awarding
grants to automobile dealers to defray cost of manufacturer certification allowing
electric vehicle sales; appropriating money; amending Minnesota Statutes 2020,
sections 16B.24, by adding a subdivision; 16C.135, subdivision 3; 16C.137,
subdivision 1; 168.27, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 216B; 216C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 16B.24, is amended by adding a subdivision
to read:
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The commissioner must require a person charging
a privately owned electric vehicle at a charging station located within the State Capitol area
to pay for the electricity consumed by the electric vehicle. For the purposes of this section,
"State Capitol area" has the meaning given in section 15B.02.
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This section is effective the day following final enactment.
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Minnesota Statutes 2020, section 16C.135, subdivision 3, is amended to read:
new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the central motor pool or for use by an agency, the
commissioner or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered
by cleaner fuels, or a motor vehicle powered by electricity or by a combination of electricity
and liquid fuel, if the total life-cycle cost of ownership is less than or comparable to that of
other vehicles and if the vehicle is capabledeleted text end new text begin according to the following preferences, in order:
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(1) an electric vehicle;
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(2) a hybrid electric vehicle;
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(3) a vehicle capable of being powered by cleaner fuels; and
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(4) a vehicle powered by gasoline or diesel fuel.
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(b) The commissioner may only reject a more-preferred vehicle type if:
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new text begin (1) the vehicle type is incapablenew text end of carrying out the purpose for which it is purchaseddeleted text begin .deleted text end new text begin ;
or
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(2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next lower preference vehicle type.
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This section is effective the day following final enactment.
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Minnesota Statutes 2020, section 16C.137, subdivision 1, is amended to read:
Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:
(1) ensure that all new on-road vehicles deleted text begin purchaseddeleted text end , excluding emergency and law
enforcement vehiclesdeleted text begin :deleted text end new text begin , are purchased in conformity with the hierarchy of preferences
established in section 16C.135, subdivision 3;
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(i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
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(ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
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(iii) are powered solely by electricity;
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(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and
(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.
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This section is effective the day following final enactment.
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Minnesota Statutes 2020, section 168.27, is amended by adding a subdivision to
read:
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(a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
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(1) fundamentals of electric vehicles;
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(2) electric vehicle charging options and costs;
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(3) publicly available electric vehicle incentives;
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(4) projected maintenance and fueling costs for electric vehicles;
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(5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
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(6) the impacts of Minnesota's cold climate on electric vehicle operation; and
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(7) best practices to sell electric vehicles.
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(b) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
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This section is effective January 1, 2022.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
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(c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
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(d) "Electric vehicle charging station" means a physical location deploying equipment
that:
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(1) transfers electricity to an electric vehicle battery; or
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(2) dispenses hydrogen, produced by electrolysis, into an electric vehicle that uses a fuel
cell to convert the hydrogen to electricity.
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(e) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and any associated machinery, equipment, and infrastructure necessary
to support the operation of electric vehicles and to make electricity from a public utility's
electric distribution system available to electric vehicle charging stations or battery exchange
stations.
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(f) "Electrolysis" means the process of using electricity to split water into hydrogen and
oxygen.
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(g) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
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(h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
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(a) By June 1, beginning in
2022 and every three years thereafter, a public utility serving retail electric customers in a
city of the first class, as defined in section 410.01, must file a transportation electrification
plan with the commission that is designed to maximize the overall benefits of electrified
transportation while minimizing overall costs and to promote:
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(1) the purchase of electric vehicles by the public utility's customers; and
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(2) the deployment of electric vehicle infrastructure in the public utility's service territory.
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(b) A transportation electrification plan may include but is not limited to the following
elements:
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(1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment to potential users and deployers, including individuals,
electric vehicle dealers, single-family and multifamily housing developers and property
management companies, and vehicle fleet managers;
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(2) utility investments and incentives to facilitate the deployment of electric vehicles,
customer- or utility-owned electric vehicle charging stations, electric vehicle infrastructure,
and other electric utility infrastructure;
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(3) research and demonstration projects to publicize and measure the value electric
vehicles provide to the electric grid;
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(4) rate structures or programs, including time-varying rates and charging optimization
programs, that encourage electric vehicle charging that optimizes electric grid operation;
and
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(5) programs to increase access to the benefits of electricity as a transportation fuel by
low-income customers and communities, including the installation of electric vehicle
infrastructure in neighborhoods with a high proportion of low- or moderate-income
households, the deployment of electric vehicle infrastructure in community-based locations
or multifamily residences, car share programs, and electrification of public transit vehicles.
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(c) A public utility must give priority under this section to making investments in
communities whose governing body has enacted a resolution or goal supporting electric
vehicle adoption.
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(d) A public utility must work with local communities to identify suitable high-density
locations, consistent with a community's local development plans, where electric vehicle
infrastructure may be strategically deployed.
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The
commission must review a transportation electrification plan filed under this section within
180 days of receiving it. The commission may approve, modify, or reject a transportation
electrification plan. When reviewing a public utility's transportation electrification plan, the
commission must consider whether the programs and expenditures:
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(1) improve electric grid operation and the integration of renewable energy sources;
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(2) increase access to the benefits of electricity as a transportation fuel in low-income
and rural communities;
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(3) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
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(4) stimulate private capital investment and the creation of skilled jobs as a consequence
of widespread electric vehicle deployment;
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(5) educate potential customers about the benefits of electric vehicles;
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(6) support increased consumer choice with respect to electrical vehicle charging options
and related infrastructure; and
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(7) are transparent and incorporate sufficient and frequent public reporting of program
activities to facilitate changes in program design and commission policy with respect to
electric vehicles.
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(a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investment made by
a public utility to administer and implement a transportation electrification plan approved
under subdivision 3:
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(1) a rider or other tariff mechanism for the automatic annual adjustment of charges;
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(2) performance-based incentives; or
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(3) placing the investment, including rebates, in the public utility's rate base and allowing
the public utility to earn a rate of return on the investment at (i) the public utility's average
weighted cost of capital, including the rate of return on equity, approved by the commission
in the public utility's most recent general rate case, or (ii) another rate determined by the
commission.
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(b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
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This section is effective the day following final enactment.
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(a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
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(b) "Dealer" means a person, firm, or corporation that possesses a new motor vehicle
license under chapter 168 and:
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(1) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
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(2) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
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(3) possesses new and unused motor vehicles to sell or trade the motor vehicles.
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(c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
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(d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
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(e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (b).
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(f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred, other than the right to use the vehicle for a term of at least 24
months.
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(g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
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(h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
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(a) A new electric vehicle is eligible for a rebate under this
section if the electric vehicle:
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(1) has not been previously owned;
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(2) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state;
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(3) is returned to a dealer by a purchaser or lessee:
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(i) within two weeks of purchase or leasing or when a purchaser's or lessee's financing
for the electric vehicle has been disapproved; or
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(ii) before the purchaser or lessee takes delivery, even if the electric vehicle is registered
in Minnesota;
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(4) has not been modified from the original manufacturer's specifications;
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(5) has a base manufacturer's suggested retail price not exceeding $60,000;
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(6) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota; and
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(7) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale.
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(b) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle has previously been owned in this state or another state and has not been
modified from the original manufacturer's specifications.
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A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
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(1) is one of the following:
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(i) a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased or leased;
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(ii) a business that has a valid address in Minnesota from which business is conducted;
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(iii) a nonprofit corporation incorporated under chapter 317A; or
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(iv) a political subdivision of the state;
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(2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from Minnesota; and
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(3) registers the electric vehicle in Minnesota.
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(a) A $2,500 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
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(b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
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(c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Health and Human Services is eligible for a rebate, in
addition to a rebate under paragraph (a) or (b), as applicable, of $500 for the purchase or
lease of an eligible new electric vehicle and $100 for the purchase or lease of an eligible
used electric vehicle.
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The number of rebates allowed under this section is limited to:
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(1) no more than one rebate per resident per household; and
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(2) no more than one rebate per business entity per year.
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(a) Rebate applications under this section must be
filed with the commissioner on a form developed by the commissioner.
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(b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
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(c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
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(d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on fund availability or other factors.
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This section expires June 30, 2025.
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This section is effective the day following final enactment.
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A grant program is established in the Department of
Commerce to award grants to dealers to offset the costs of obtaining the necessary training
and equipment that is required by electric vehicle manufacturers in order to certify a dealer
to sell electric vehicles produced by the manufacturer.
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An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
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An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
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Appropriations made to support the activities of this
section must be used only to reimburse:
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(1) a dealer for the reasonable costs of obtaining training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
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(2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
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(3) the department for the reasonable costs to administer this section.
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A grant awarded under this section to a single dealer must not
exceed $40,000.
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This section is effective the day following final enactment.
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(a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$10,000,000 in fiscal year 2022 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award rebates to purchase or lease eligible electric vehicles under Minnesota Statutes,
section 216C.401. Rebates may be awarded under this paragraph only to eligible purchasers
located within the retail electric service area of the public utility that is subject to Minnesota
Statutes, section 116C.779.
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(b) $10,000,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of commerce to award rebates to purchase or lease eligible electric vehicles
under Minnesota Statutes, section 216C.401. Rebates may be awarded under this paragraph
only to eligible purchasers located outside the retail electric service area of the public utility
that is subject to Minnesota Statutes, section 116C.779.
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(c) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$2,000,000 in fiscal year 2022 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award grants under Minnesota Statutes, section 216C.402, to automobile dealers seeking
certification from an electric vehicle manufacturer to sell electric vehicles. Rebates may
only be awarded under this paragraph to eligible dealers located within the retail electric
service area of the public utility that is subject to Minnesota Statutes, section 116C.779.
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(d) $2,000,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of commerce to award grants under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to sell electric vehicles. Rebates may only be
awarded under this paragraph to eligible dealers located outside the retail electric service
area of the public utility that is subject to Minnesota Statutes, section 116C.779.
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This section is effective the day following final enactment.
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