1.1 	A bill for an act
1.2 	relating to energy; creating a prepurchase delivered fuel program;proposing 
1.3 	coding for new law in Minnesota Statutes, chapter 216B.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [216B.0951] PREPURCHASE DELIVERED FUEL PROGRAM.
1.6 		Subdivision 1.Created. The department shall operate, or contract to operate, an 
1.7 	annual prepurchase delivered fuel program.
1.8 	By September 1 of each year, the department must, if it has sufficient funds available 
1.9 	for that purpose, purchase at least one-third of the liquid propane fuel consumed by 
1.10 	low-income home energy assistance program recipients during the previous heating 
1.11 	season. The department shall enter into agreements with vendors who offer summer 
1.12 	prepurchase discount programs, and attempt to negotiate price discounts, including 
1.13 	discounts for prompt payments. The prepurchase delivered fuel program must be available 
1.14 	statewide through each local agency that administers the energy assistance program.
1.15 		Subd. 2.Hedge account. The department may establish a hedge account with 
1.16 	realized program savings due to prepurchasing. The account must be used to compensate 
1.17 	program recipients an amount up to the difference in cost for fuel provided to the recipient 
1.18 	if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No 
1.19 	more than ten percent of the aggregate prepurchase program savings may be used to 
1.20 	establish the hedge account. 
1.21 		Subd. 3.Fuel oil. Any funds allocated for prepurchase remaining after the 
1.22 	prepurchase of propane must be used to negotiate summer fills for energy assistance 
1.23 	program customers heating with fuel oil.
2.1 		Subd. 4.Report. The department shall issue an annual report, made available 
2.2 	electronically on its Web site and in print upon request, which contains the following 
2.3 	information:
2.4 	(1) the cost per gallon of the prepurchased fuel;
2.5 	(2) the total gallons of fuel prepurchased;
2.6 	(3) the average cost of propane and fuel oil by month between October and the 
2.7 	following April;
2.8 	(4) the number of energy assistance program households receiving prepurchased 
2.9 	fuel; and 
2.10 	(5) the average savings accruing or benefit increase provided to energy assistance 
2.11 	households.

2.12 	EFFECTIVE DATE. This section is effective the day following final enactment.