HF 3720

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; setting targets for increasing proportion of flexible-fuel
vehicles in this state; creating task force on plug-in hybrid electric vehicles;
establishing commission to develop incentive package for enhancement of St.
Paul's Ford plant; requiring Public Utilities Commission to open investigative
proceeding and to order utility to conduct a study; requiring state procurement
policy language in certain bid documents; appropriating money for a grant;
proposing coding for new law in Minnesota Statutes, chapter 80E.

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

Section 1.

new text begin [80E.35] FLEXIBLE-FUEL VEHICLE TARGETS.
new text end

new text begin Subdivision 1. new text end

new text begin Findings. new text end

new text begin The legislature finds that it is in the interest of all
Minnesotans to lessen dependence on oil as an energy source for economic, security,
and environmental reasons. Minnesota leads the nation in the production and use of
ethanol in motor vehicles, but this strategy can be made more effective by increasing the
proportion of vehicles that can use alternative fuels, such as E85. Further, manufacturers
can produce flexible-fuel vehicles at a minimal incremental cost above gasoline-only
vehicles. As a result, the legislature finds that Minnesota would benefit from more choices
of flexible-fuel vehicles.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, "flexible-fuel vehicle" means a
motor vehicle that operates on gasoline and one or more alternative fuels.
new text end

new text begin (b) As used in this section, "alternative fuel" has the meaning given in United States
Code, title 42, section 13211(3).
new text end

new text begin Subd. 3. new text end

new text begin Target. new text end

new text begin (a) The targets in this subdivision apply to manufacturers who
grant a valid sales and service agreement, franchise, or contract to a dealer in this state.
new text end

new text begin (b) The following targets refer to the percentage of a manufacturer's new motor
vehicles offered for sale in this state that are flexible-fuel vehicles:
new text end

new text begin (1) 2008: ten percent;
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new text begin (2) 2009: 15 percent;
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new text begin (3) 2010: 20 percent;
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new text begin (4) 2011: 25 percent; and
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new text begin (5) 2012: 30 percent.
new text end

Sec. 2. new text begin PLUG-IN HYBRID ELECTRIC VEHICLE TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin The Plug-in Hybrid Electric Vehicle
(PHEV) Task Force is established. The task force shall consist of 11 members as follows:
new text end

new text begin (1) one representative each from Xcel Energy and Great River Energy;
new text end

new text begin (2) one representative each from the Minnesota Department of Commerce, the
Minnesota Department of Transportation, and the Minnesota Pollution Control Agency;
new text end

new text begin (3) the director of the Travel Management Division of the Minnesota Department of
Administration, or the director's designee;
new text end

new text begin (4) a representative from the University of Minnesota Department of Electrical
Engineering;
new text end

new text begin (5) one representative each from Minnesota-based manufacturers of electric
batteries, automotive parts, and power-electronics; and
new text end

new text begin (6) a representative from an environmental advocacy organization active in
electricity issues.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy shall jointly appoint the task
force members.
new text end

new text begin Subd. 3. new text end

new text begin Co-chairs. new text end

new text begin The task force shall have two co-chairs, one appointed by each
of the appointing authorities established in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Charge. new text end

new text begin (a) The Plug-in Hybrid Electric Vehicle (PHEV) Task Force shall
identify barriers to the adoption of PHEV's by state agencies, small and large private
fleets, and Minnesota drivers at large and develop strategies to be implemented over a
one-, three-, and five-year time frame to overcome those barriers.
new text end

new text begin (b) The task force shall prepare requests for bids for the state and political
subdivisions of the state to purchase a significant number of PHEV's over several years,
based on their availability, performance, price, and the data presented to the task force
under subdivision 5. The bids must state that they become effective only if the specified
performance specifications and target price per vehicle are met.
new text end

new text begin (c) The task force shall consider and evaluate the data and information presented to
it under subdivision 5 in presenting its findings and recommendations.
new text end

new text begin Subd. 5. new text end

new text begin Data and analysis. new text end

new text begin (a) The commissioner of administration shall analyze
and report to the task force the economic impacts of purchasing a sufficient number of
PHEV's to comprise ten percent, 25 percent, and 50 percent of the state-owned vehicle
fleet. The analysis must compare initial purchase and life-cycle costs of PHEV's and
current fleet vehicles under several scenarios based on alternative projections of future
gasoline prices and prices at which utilities may charge PHEV's to recharge.
new text end

new text begin (b) The commissioner of pollution control shall analyze and report to the task force
the environmental impacts of purchasing PHEV's for the state-owned vehicle fleet and at
penetration rates of ten percent, 25 percent, and 50 percent of all motor vehicles registered
in this state. The analysis must compare, for PHEV's and current fleet vehicles, air
emissions of sulfur dioxide, nitrogen oxides, particulate matter less than 2.5 microns in
width, volatile organic compounds, and carbon dioxide.
new text end

new text begin Subd. 6. new text end

new text begin Expenses. new text end

new text begin Members of the task force are entitled to reimbursement for
expenses under Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 7. new text end

new text begin Staff. new text end

new text begin The state agencies represented on the commission shall provide
staff support.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin The task force shall present its findings and recommendations in a
report to the chairs of the senate and house of representatives committees with primary
jurisdiction over energy policy and state government operations by April 1, 2007.
new text end

new text begin Subd. 9. new text end

new text begin Definition. new text end

new text begin As used in this section and in sections 3 to 7, "plug-in hybrid
electric vehicle (PHEV)" means a vehicle containing an internal combustion engine that
also allows power to be delivered to the drive wheels by a battery-powered electric motor,
and that meets applicable federal motor vehicle safety standards. When connected to the
electrical grid via an electrical outlet, the vehicle must be able to recharge its battery. The
vehicle must have the ability to travel at least 20 miles powered substantially by electricity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin FORD PLANT ENHANCEMENT COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; members. new text end

new text begin The Ford Plant Enhancement
Commission is established. The commission shall consist of no more than 15 members
as follows:
new text end

new text begin (1) the commissioner of employment and economic development;
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new text begin (2) the director of planning and economic development for the city of St. Paul;
new text end

new text begin (3) a representative from the collective bargaining unit representing production
workers at the Ford Company plant in St. Paul;
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new text begin (4) a representative from Xcel Energy; and
new text end

new text begin (5) representatives from Minnesota-based suppliers of materials, equipment, and
services to the motor vehicle industry, including, but not limited to, motor vehicle parts
manufacturers, manufacturers of electrical equipment and electric batteries, ethanol
producers, and bankers.
new text end

new text begin The Department of Employment and Economic Development is the lead agency
in this effort.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy and economic development
policy shall jointly appoint the commission members.
new text end

new text begin Subd. 3. new text end

new text begin Co-chairs. new text end

new text begin The commission shall have two co-chairs, one appointed by the
senate appointing authorities established in subdivision 2 and one appointed by the house
of representatives appointing authorities established in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Charge. new text end

new text begin The commission shall develop a package of financial and other
incentives to induce a manufacturer to utilize the Ford Company plant in St. Paul to
produce plug-in hybrid electric vehicles (PHEV's).
new text end

new text begin Subd. 5. new text end

new text begin Expenses. new text end

new text begin Members of the commission are entitled to reimbursement for
expenses under Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Staff. new text end

new text begin The Department of Employment and Economic Development shall
provide staff support.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin The commission shall present the package of incentives developed
under subdivision 4 in a report to the senate and house of representatives committees with
primary jurisdiction over energy policy and economic development policy by November
15, 2006.
new text end

Sec. 4. new text begin PUBLIC UTILITIES COMMISSION PROCEEDING.
new text end

new text begin Subdivision 1. new text end

new text begin Proceeding. new text end

new text begin The Minnesota Public Utilities Commission shall open
a proceeding to investigate how utilities can best develop the infrastructure to connect
plug-in hybrid electric vehicles (PHEV's) to the electrical grid and to allow utilities to
purchase electricity from PHEV's.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin As used in this section and in sections 5 and 6, "plug-in hybrid
electric vehicle (PHEV)" means a vehicle containing an internal combustion engine that
also allows power to be delivered to the drive wheels by a battery-powered electric motor,
and that meets applicable federal motor vehicle safety standards. When connected to the
electrical grid via a two-way electrical outlet, the vehicle must be able to recharge its
battery and to transfer electricity to a utility. The vehicle must have the ability to travel at
least 20 miles powered substantially by electricity.
new text end

Sec. 5. new text begin INDEPENDENT STUDY ON PHEV AND UTILITY ECONOMICS.
new text end

new text begin The Public Utilities Commission shall order the utility subject to Minnesota Statutes,
section 216B.1691, subdivision 6, to contract with a firm selected by the commissioner of
commerce for an independent study of (1) the economics of using electricity purchased
from PHEV's to provide to the utility peak power services and ancillary services, including
regulation and spinning reserves, and (2) how such purchases may impact the reserve
needs for wind-generated electricity purchased by the utility. The study must examine
the economic impacts on PHEV owners and utilities of different prices for electricity
purchased from PHEV's and rates for recharging PHEV's, including time-of-day pricing
and substantial discounts for off-peak charging. The study must be completed by April 1,
2007, and submitted in a report to the chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy. The costs of the study are
recoverable under Minnesota Statutes, section 216B.1645.
new text end

Sec. 6. new text begin NOTICE OF STATE PROCUREMENT POLICY IN BID DOCUMENTS.
new text end

new text begin All solicitation documents for the purchase of motor vehicles issued by the
Department of Administration after June 30, 2006, must contain the following language:
"It is the intention of the state of Minnesota to begin purchasing plug-in hybrid electric
vehicles (PHEV's) as soon as they become commercially available, meet the state's
performance specifications, and are priced no more than ten percent above the price for
comparable gasoline-powered vehicles. It is the intention of the state to purchase at least
500 PHEV's within one year after these conditions have been met, and to purchase at least
5,000 PHEV's annually for at least five years beginning two years after these conditions
have been met."
new text end

Sec. 7. new text begin PLUG-IN ELECTRIC VEHICLE RETROFIT GRANT.
new text end

new text begin $100,000 is appropriated from the general fund to the commissioner of commerce
for a grant to the Automotive Engineering Program at Minnesota State University -
Mankato for the purpose of retrofitting two flexible-fuel vehicles to enable them to also
operate as plug-in hybrid electric vehicles.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective the day following final enactment.
new text end