1.1                          A bill for an act 
  1.2             relating to motor vehicles; requiring reports 
  1.3             regarding fuel purchased for use in certain 
  1.4             state-owned vehicles; requiring the use of E85 fuel in 
  1.5             flexible-fuel vehicles; requiring periodic reports; 
  1.6             providing for special license plates for alternative 
  1.7             fuel vehicles powered by E85 fuel; directing 
  1.8             commissioner of transportation to authorize use of 
  1.9             high-occupancy vehicle lanes by E85-fueled vehicles; 
  1.10            amending Minnesota Statutes 2002, section 16C.135, by 
  1.11            adding subdivisions; proposing coding for new law in 
  1.12            Minnesota Statutes, chapter 168. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 16C.135, is 
  1.15  amended by adding a subdivision to read: 
  1.16     Subd. 4.  [COMMISSIONER DUTIES; PERIODIC NOTICE TO 
  1.17  AGENCIES; REPORT TO THE LEGISLATURE.] (a) Not later than 
  1.18  September 1, 2004, and at intervals not exceeding six months 
  1.19  thereafter, the commissioner shall provide a written or 
  1.20  electronic communication to the head of each agency for which 
  1.21  the commissioner acquires or has oversight authority for the 
  1.22  acquisition of passenger automobiles, vans, or pickup trucks 
  1.23  used by the agency.  The communication must remind the agency 
  1.24  head of the statutory requirement in subdivision 2 that 
  1.25  state-owned or leased vehicles capable of being operated on E85 
  1.26  fuel (manufactured as flexible-fuel vehicles) should be operated 
  1.27  on E85 fuel whenever and wherever the fuel is reasonably 
  1.28  available.  The communication must also include a form for use 
  1.29  by the head of the agency to report to the commissioner on total 
  2.1   fuel purchased for use in the flexible-fuel vehicles operated by 
  2.2   the agency and the extent to which fuel purchases are E85 fuel. 
  2.3      (b) Not later than March 1 of each year the commissioner 
  2.4   shall report to appropriate committees of the senate and the 
  2.5   house of representatives on the extent to which flexible-fuel 
  2.6   vehicles owned or leased by the state are operated on E85 fuel. 
  2.7      Sec. 2.  Minnesota Statutes 2002, section 16C.135, is 
  2.8   amended by adding a subdivision to read: 
  2.9      Subd. 5.  [AGENCY REPORTS.] Each agency that operates one 
  2.10  or more highway vehicles that are flexible-fuel vehicles shall 
  2.11  report not later than April 1 and October 1 to the commissioner, 
  2.12  on the form provided by the commissioner or in a comparable 
  2.13  manner, on the extent to which the agency has complied with the 
  2.14  requirement to use E85 fuel in flexible-fuel vehicles operated 
  2.15  by the agency. 
  2.16     Sec. 3.  [168.1265] [E85-FUELED VEHICLES; SPECIAL PLATES.] 
  2.17     Subdivision 1.  [SPECIAL LICENSE PLATE DESIGN.] License 
  2.18  plates issued under this subdivision are subject to the 
  2.19  requirements of section 168.1291. 
  2.20     Subd. 2.  [GENERAL REQUIREMENTS; FEES.] (a) On payment of a 
  2.21  fee for each set of two license plates, calculated by the 
  2.22  registrar of motor vehicles to cover the cost of manufacturing 
  2.23  and issuing the special plates authorized by this section, 
  2.24  payment of the registration tax required by law, and compliance 
  2.25  with other laws relating to the registration and licensing of a 
  2.26  passenger automobile, pickup truck, or van, as applicable, the 
  2.27  registrar shall issue special license plates to an applicant who 
  2.28  is an owner or joint owner of an alternative fuel vehicle.  For 
  2.29  purposes of this section, "alternative fuel vehicle" means any 
  2.30  passenger automobile, pickup truck, or van powered by E85 fuel, 
  2.31  as defined in section 296A.01, subdivision 19. 
  2.32     (b) The additional fee calculated by the registrar is 
  2.33  payable at the time of initial application for the special 
  2.34  license plates and when the license plates must be replaced.  An 
  2.35  applicant must not be issued more than one set of special 
  2.36  license plates for each alternative fuel vehicle owned or 
  3.1   jointly owned by the applicant. 
  3.2      (c) The registrar shall determine by rule what 
  3.3   documentation or inspection is required by each applicant to 
  3.4   show that the applicant owns an alternative fuel vehicle that 
  3.5   uses E85 fuel and is entitled to the special license plates. 
  3.6      Subd. 3.  [DESIGN.] The registrar, after consultation with 
  3.7   law enforcement agencies, shall design the special license 
  3.8   plates to display "E85" of a size and color readily viewable by 
  3.9   law enforcement personnel, which must be at least as large as 
  3.10  the other letters and numerals on the plate.  
  3.11     Subd. 4.  [FEES CREDITED.] Fees collected under this 
  3.12  section must be paid into the state treasury and credited to the 
  3.13  highway user tax distribution fund. 
  3.14     Sec. 4.  [COMMISSIONER OF TRANSPORTATION; HIGH-OCCUPANCY 
  3.15  VEHICLE LANE USE.] 
  3.16     For lanes located on any interstate highways and on any 
  3.17  other freeways, as defined in Minnesota Statutes, section 
  3.18  160.02, that on the effective date of this act were restricted 
  3.19  for all or any part of a day to high-occupancy vehicles only, 
  3.20  the commissioner of transportation, by executive order, shall 
  3.21  allow the operation of alternative fuel vehicles, displaying 
  3.22  special E85 license plates issued under section 3, in those 
  3.23  lanes at all times.  
  3.24     In the case of lanes on marked interstate highway 394, the 
  3.25  commissioner shall designate the direction in which vehicles 
  3.26  allowed to use the lanes under this section must travel and the 
  3.27  hours during which travel in each direction is permitted. 
  3.28     Sec. 5.  [EFFECTIVE DATE.] 
  3.29     This act is effective July 1, 2005.