1.1                          A bill for an act 
  1.2             relating to fuel purchased for use in certain 
  1.3             state-owned vehicles; requiring the use of E85 fuel in 
  1.4             flexible-fuel vehicles; requiring periodic reports; 
  1.5             providing sanctions; amending Minnesota Statutes 2002, 
  1.6             section 16C.135, by adding subdivisions. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 16C.135, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 4.  [COMMISSIONER DUTIES; PERIODIC NOTICE TO 
  1.11  AGENCIES; REPORT TO THE LEGISLATURE.] (a) Not later than 
  1.12  September 1, 2004, and at intervals not exceeding six months 
  1.13  thereafter, the commissioner shall provide a written or 
  1.14  electronic communication to the head of each agency for which 
  1.15  the commissioner acquires or has oversight authority for the 
  1.16  acquisition of passenger automobiles, vans, or pickup trucks 
  1.17  used by the agency.  The communication must remind the agency 
  1.18  head of the statutory requirement in subdivision 2 that 
  1.19  state-owned or leased vehicles capable of being operated on E85 
  1.20  fuel (manufactured as flexible-fuel vehicles) should be operated 
  1.21  on E85 fuel whenever and wherever the fuel is reasonably 
  1.22  available.  The communication must also include a form for use 
  1.23  by the head of the agency to report to the commissioner on total 
  1.24  fuel purchased for use in the flexible-fuel vehicles operated by 
  1.25  the agency and the extent to which fuel purchases are E85 fuel. 
  1.26     (b) Not later than March 1 of each year the commissioner 
  2.1   shall report to appropriate committees of the senate and the 
  2.2   house of representatives on the extent to which flexible-fuel 
  2.3   vehicles owned or leased by the state are operated on E85 fuel. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 16C.135, is 
  2.5   amended by adding a subdivision to read: 
  2.6      Subd. 5.  [AGENCY REPORTS.] Each agency that operates one 
  2.7   or more highway vehicles that are flexible-fuel vehicles shall 
  2.8   report not later than April 1 and October 1 to the commissioner, 
  2.9   on the form provided by the commissioner or in a comparable 
  2.10  manner, on the extent to which the agency has complied with the 
  2.11  requirement to use E85 fuel in flexible-fuel vehicles operated 
  2.12  by the agency. 
  2.13     Sec. 3.  Minnesota Statutes 2002, section 16C.135, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 6.  [BUDGET SANCTIONS FOR AGENCY NONCOMPLIANCE.] (a) 
  2.16  An agency that fails to comply in substantial measure with the 
  2.17  requirements of subdivision 2 or 5 is subject to mandatory 
  2.18  sanctions to be enforced by the commissioner and the 
  2.19  commissioner of finance. 
  2.20     (b) The commissioner shall examine the semiannual reports 
  2.21  submitted by agencies under subdivision 5 and calculate the 
  2.22  percentage of fuel purchases by the agency for use in 
  2.23  flexible-fuel vehicles operated by the agency that is E85 fuel. 
  2.24     (c) If the commissioner determines that less than 75 
  2.25  percent of the gallons of fuel purchased by an agency for use in 
  2.26  flexible-fuel vehicles in the previous six-month period is E85 
  2.27  fuel, the commissioner must calculate the difference between 75 
  2.28  percent of the total gallons of fuel that could be used in 
  2.29  flexible fuel vehicles and the gallons of E85 fuel actually 
  2.30  used.  The commissioner shall report to the commissioner of 
  2.31  finance the agency's deficiency, in gallons, in required E85 
  2.32  fuel purchased. 
  2.33     (d) The commissioner of finance shall notify the head of 
  2.34  each agency of the gallons of E85 fuel deficiency reported by 
  2.35  the commissioner of administration.  For each gallon of E85 
  2.36  deficiency, the commissioner of finance shall immediately cancel 
  3.1   to the general fund a portion of the agency's operating budget 
  3.2   in an amount calculated by multiplying the gallons of deficiency 
  3.3   by $0.25. 
  3.4      Sec. 4.  [EFFECTIVE DATE.] 
  3.5      This act is effective July 1, 2005.