HF 3770

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/24/2022 02:06pm

A bill for an act
relating to commerce; establishing a liquid fuel modernization fee and grant
program; appropriating money; amending Minnesota Statutes 2020, section
296A.15, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 239.

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

Section 1.

new text begin [239.787] LIQUID FUEL MODERNIZATION FEE; GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Aboveground storage tank (AST) system" means the system of components required
to safely store liquid fuel aboveground and make the liquid fuel available to purchase by a
consumer or load onto a fuel transport vehicle. AST system includes but is not limited to
tanks, vent tubes, tank monitors, piping, pumps, containment, meters, loading racks,
dispensers, hoses, and pump handles that are primarily located aboveground.
new text end

new text begin (c) "Account" means the liquid fuel modernization account established in subdivision
2.
new text end

new text begin (d) "Bulk plant" means a liquid fuel storage facility with no more than 250,000 gallons
of combined aboveground and underground storage capacity.
new text end

new text begin (e) "Controlled group" has the meaning given in section 1563(a) of the Internal Revenue
Code.
new text end

new text begin (f) "Eligible entity" means a business entity or controlled group that installs eligible fuel
infrastructure at a new or existing retail fueling site or bulk plant that is owned or operated
by the business entity or controlled group.
new text end

new text begin (g) "Eligible fuel infrastructure" means:
new text end

new text begin (1) all UST system components that are compatible with higher biofuel blends; and
new text end

new text begin (2) all AST system components that are compatible with higher biofuel blends.
new text end

new text begin (h) "Higher biofuel blends" means (1) blends of gasoline and ethanol containing more
than ten percent ethanol by volume, and (2) blends of diesel and biodiesel containing more
than 20 percent biodiesel by volume.
new text end

new text begin (i) "Liquid fuel" means petroleum products.
new text end

new text begin (j) "Petroleum products" has the meaning given in section 296A.01, subdivision 42.
new text end

new text begin (k) "Retail fueling site" means a convenience store, service station, or other facility that
offers liquid fuel for sale to consumers.
new text end

new text begin (l) "Underground storage tank (UST) system" means the system of components required
to safely store liquid fuel underground and make the liquid fuel available to purchase by a
consumer or load onto a fuel transport vehicle. UST system includes but is not limited to
spill buckets, drop tubes, tanks, vent tubes, tank monitors, piping, submersible pumps,
containment, meters, dispensers, hoses, and pump handles that are located aboveground or
underground.
new text end

new text begin Subd. 2. new text end

new text begin Account; revenue sources; appropriation. new text end

new text begin (a) A liquid fuel modernization
account is established in the special revenue fund. Revenue from the following sources must
be deposited in the state treasury and credited to the account:
new text end

new text begin (1) the proceeds of the fee imposed under subdivision 4;
new text end

new text begin (2) interest attributable to investment of money in the account; and
new text end

new text begin (3) money received by the commissioner in the form of gifts, grants other than federal
grants, reimbursements, or appropriations from any source intended to be used for the
purposes of this section.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to award and administer
grants under subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Imposing fee. new text end

new text begin The commissioner must notify the commissioner of revenue if
the unencumbered account balance falls below $35,000,000. Within 60 days of the date the
notice is received, the commissioner of revenue must impose the fee established in
subdivision 4 on the use of a tank until the account balance reaches $60,000,000, with
payment submitted with each monthly distributor tax return.
new text end

new text begin Subd. 4. new text end

new text begin Liquid fuel modernization fee. new text end

new text begin (a) Until June 30, 2032, a liquid fuel
modernization fee is imposed on the use of tanks that contain petroleum products. On
products other than gasoline, the fee must be paid in the manner provided under section
296A.15 by the first licensed distributor, as defined in section 296A.01, receiving the product
in Minnesota. When the product is gasoline, the distributor responsible for paying the
gasoline tax is also responsible for paying the liquid fuel modernization fee.
new text end

new text begin (b) The commissioner of revenue must impose the fee at a rate of $13 per 1,000 gallons
of petroleum products, rounded to the nearest 1,000 gallons.
new text end

new text begin (c) A distributor who fails to pay the fee imposed under this subdivision is subject to
the penalties provided under section 296A.22.
new text end

new text begin Subd. 5. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner, in consultation with the advisory
committee established under subdivision 6, must implement a liquid fuel modernization
grant program. The commissioner must award grants to eligible entities. Applicants must
apply to the commissioner in the form required by the commissioner.
new text end

new text begin (b) Grants are equal to 65 percent of total equipment and labor costs incurred by an
eligible entity to install eligible fuel infrastructure, but must not exceed $800,000 per eligible
entity each year. If an eligible entity also receives financial assistance from another source,
the commissioner must decrease the grant amount under this paragraph if necessary so that
total financial assistance from all sources does not exceed 100 percent of total equipment
and labor costs.
new text end

new text begin (c) An eligible entity that receives a grant under this section must certify to the
commissioner that the eligible fuel infrastructure is used to offer higher blends for sale at
the retail fueling site or to store higher blends at the bulk plant.
new text end

new text begin Subd. 6. new text end

new text begin Advisory committee. new text end

new text begin (a) The commissioner must convene a liquid fuel
modernization grant program advisory committee. The committee consists of:
new text end

new text begin (1) the commissioner of agriculture or the commissioner's designee;
new text end

new text begin (2) the director of the Pollution Control Agency's tank compliance and assistance program
or the director's designee;
new text end

new text begin (3) a Minnesota fuel equipment and service provider appointed by the governor; and
new text end

new text begin (4) a Minnesota-licensed fuel distributor appointed by the governor.
new text end

new text begin (b) The Minnesota-licensed fuel distributor appointed under paragraph (a), clause (4),
serves as chair of the committee.
new text end

new text begin (c) The filling of positions, vacancies, membership terms, payment of compensation
and expenses, and removal of members are governed by section 15.0575.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2033.
new text end

Sec. 2.

Minnesota Statutes 2020, section 296A.15, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Liquid fuel modernization fee. new text end

new text begin (a) A person required to pay a liquid fuel
modernization fee under section 239.787, subdivision 4, must file a report with the
commissioner of revenue. Each report must include the amount of fees due on petroleum
products. A report must be filed in the form and manner prescribed by the commissioner.
A written report is considered filed as required if postmarked on or before the 23rd day of
the month in which the fee is payable.
new text end

new text begin (b) This subdivision expires June 30, 2032.
new text end