1.1 	A bill for an act
1.2 	relating to energy; establishing propane prepurchase program in Department 
1.3 	of Commerce; providing consumer protections to delivered-fuel customers;
1.4 	proposing coding for new law in Minnesota Statutes, chapters 216B; 325E.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [216B.0951] PROPANE PREPURCHASE PROGRAM.
1.7 		Subdivision 1.Establishment. The commissioner of commerce shall operate, or 
1.8 	contract to operate, a propane fuel prepurchase fuel program. The commissioner may 
1.9 	contract at any time of the year to purchase the lesser of one-third of the liquid propane 
1.10 	fuel consumed by low-income home energy assistance program recipients during the 
1.11 	previous heating season or the amount that can be purchased with available funds. The 
1.12 	propane fuel prepurchase program must be available statewide through each local agency 
1.13 	that administers the energy assistance program. The commissioner may decide to limit or 
1.14 	not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood 
1.15 	that prepurchasing will not provide fuel-cost savings.
1.16 		Subd. 2.Hedge account. The commissioner may establish a hedge account with 
1.17 	realized program savings due to prepurchasing. The account must be used to compensate 
1.18 	program recipients an amount up to the difference in cost for fuel provided to the recipient 
1.19 	if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No 
1.20 	more than ten percent of the aggregate prepurchase program savings may be used to 
1.21 	establish the hedge account.
1.22 		Subd. 3.Report. The Department of Commerce shall issue a report by June 30, 
1.23 	2008, made available electronically on its Web site and in print upon request, that contains 
1.24 	the following information:
2.1 	(1) the cost per gallon of prepurchased fuel;
2.2 	(2) the total gallons of fuel prepurchased;
2.3 	(3) the average cost of propane each month between October and the following April;
2.4 	(4) the number of energy assistance program households receiving prepurchased 
2.5 	fuel; and
2.6 	(5) the average savings accruing or benefit increase provided to energy assistance 
2.7 	households.

2.8 	Sec. 2. [325E.027] DELIVERED FUEL DEALER; DISCRIMINATION 
2.9 	PROHIBITION.
2.10 	(a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil 
2.11 	who has signed a low-income home energy assistance program vendor agreement with the 
2.12 	Department of Commerce may refuse to deliver liquid propane gas or number 1 or number 
2.13 	2 fuel oil to any person located within the dealer's or distributor's normal delivery area 
2.14 	who receives direct grants under the low-income home energy assistance program if:
2.15 	(1) the person has requested delivery;
2.16 	(2) the dealer or distributor has product available;
2.17 	(3) the person requesting delivery is capable of making full payment at the time of 
2.18 	delivery; and
2.19 	(4) the person is not in arrears regarding any previous fuel purchase from that dealer 
2.20 	or distributor.
2.21 	(b) A dealer or distributor making delivery to a person receiving direct grants 
2.22 	under the low-income home energy assistance program may not charge that person any 
2.23 	additional costs or fees that would not be charged to any other customer and must make 
2.24 	available to that person any discount program on the same basis as the dealer or distributor 
2.25 	makes available to any other customer.