Minnesota Legislature
HF 373
as introduced - 90th Legislature (2017 - 2018) Posted on 01/19/2017 01:29pm
Current Version - as introduced
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A bill for an act
relating to motor vehicles; providing rebates for natural gas vehicles and fueling
stations; establishing a rebate program with the Department of Commerce;
appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin NATURAL GAS VEHICLE AND FUELING STATION REBATE
PROGRAM.
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new text begin Subdivision 1. new text end
new text begin Establishment. new text end
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(a) The commissioner of commerce, in collaboration
with a nonprofit entity possessing grant administration experience, shall administer and
provide the rebates under this section.
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(b) No later than October 1, 2017, the Department of Commerce shall implement written
policies and procedures, and have the required rebate forms available, to exercise the
authority under this section. The policies and procedures must include a mechanism for an
applicant to receive provisional approval of a rebate for a period of time the commissioner
deems appropriate.
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new text begin Subd. 2. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the following terms have the
meanings given.
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(b) "Natural gas vehicle" means a motor vehicle capable of using compressed natural
gas or liquefied natural gas as a motor fuel.
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(c) "Incremental cost" means the cost to convert a conventional vehicle, or the difference
between the cost of a natural gas vehicle and the cost of the same or similar motor vehicle,
manufactured to operate exclusively on gasoline or diesel fuel.
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(d) "Fueling Station" means a governmental unit fleet service or retail station at a publicly
accessible, fixed location intended for use in fueling natural gas vehicles.
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(e) "Light-duty vehicle" means passenger cars and Class 1, 2, and 3 trucks with a gross
vehicle weight rating up to 14,000 pounds.
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(f) "Medium-duty vehicle" means Class 4, 5, and 6 trucks with a gross vehicle weight
rating of 14,001 pounds to 26,000 pounds.
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(g) "Heavy-duty vehicle" means Class 7 and 8 trucks with a gross vehicle weight rating
of 26,001 pounds or greater.
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(h) "High-horsepower machine" means heavy-duty off-road and heavy-duty equipment,
including but not limited to excavators, mining trucks, locomotives, and marine applications.
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new text begin Subd. 3. new text end
new text begin Rebate eligibility. new text end
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(a) Minnesota residents, governmental units, and business
entities, including but not limited to state agencies, transit authorities, school districts,
municipalities, counties, convenience stores, waste disposal companies, or other truck fleets
with public access pumps that purchase a natural gas vehicle, convert a conventional vehicle
to use natural gas, or purchase and install a fueling station are eligible for a rebate under
this section.
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(b) Vehicle conversions must be compliant with Natural Fire Protection Association
(NFPA) 52 Vehicular Gaseous Fuel Systems Code standards, and must be installed by a
certified and insured installer.
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(c) Vehicles must be part of a public, nonprofit, or private fleet that is (1) domiciled in
or near Minnesota, and (2) operated predominately in Minnesota.
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(d) Fueling stations must be located in Minnesota.
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(e) The following expenses are eligible for a rebate:
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(1) the incremental cost of an original equipment manufacturer natural gas vehicle
purchased;
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(2) the incremental cost to convert a conventional vehicle to a natural gas vehicle; and
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(3) the cost of fueling station equipment, including construction and installation costs.
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new text begin Subd. 4. new text end
new text begin Rebate amounts. new text end
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Rebates under this section may be issued for:
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(1) no more than 50 percent of the incremental cost of a light-duty vehicle, not to exceed
$5,000;
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(2) no more than 50 percent of the incremental cost of a medium-duty vehicle, not to
exceed $8,000;
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(3) no more than 50 percent of the incremental cost of a heavy-duty vehicle, not to exceed
$20,000;
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(4) no more than 50 percent of the incremental cost of a high-horsepower machine, not
to exceed $50,000; and
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(5) no more than 50 percent of the cost of a new fueling station, not to exceed $400,000.
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new text begin Subd. 5. new text end
new text begin Maximum rebate allowed. new text end
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(a) The maximum number of rebates allowed under
this section are as follows:
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(1) no more than one rebate per resident household for a passenger car or light-duty
vehicle;
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(2) no more than $100,000 for light-duty vehicles per business entity or governmental
unit per year;
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(3) no more than $300,000 for medium-duty vehicles per business entity or governmental
unit per year;
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(4) no more than $500,000 for heavy-duty vehicles per business entity or governmental
unit per year;
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(5) no more than $500,000 for high-horsepower machines per business entity or
governmental unit per year; and
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(6) no more than three fueling station rebates per business entity or governmental unit
per year.
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(b) The maximum rebate amount allowed under paragraph (a) to a single business entity
or governmental unit for all vehicle types is $500,000.
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new text begin Subd. 6. new text end
new text begin Appropriation. new text end
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(a) $5,500,000 in fiscal year 2018 is appropriated from the
general fund to the commissioner of commerce for the purposes of the rebate program under
this section.
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(b) The appropriation under paragraph (a) shall be expended as follows:
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(1) $3,500,000 for natural gas vehicle rebates and high-horsepower machines; and
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(2) $2,000,000 for new natural gas fueling station rebates.
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(c) Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in this
subdivision is available until expended.
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