SF 4554

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/27/2026 09:06 a.m.

A bill for an act
relating to energy; specifying required elements in an application to the Public
Utilities Commission for a certificate of need for a petroleum pipeline; proposing
coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.2431] CERTIFICATE OF NEED; ENERGY DEMAND
FORECASTS; PETROLEUM PIPELINES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Application" means an application for a certificate of need filed under section
216B.243 to construct a pipeline that transports crude oil, motor fuel, or other refined
petroleum products.
new text end

new text begin (c) "Calendar day" means a measure of daily refinery capacity that adjusts for typical
operating conditions, including downtime for maintenance.
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new text begin (d) "Consumer" means a person that purchases a motor fuel or other refined petroleum
product from a retailer to utilize or otherwise consume the energy contained in the motor
fuel or other refined petroleum product.
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new text begin (e) "Contiguous states" means the states of Iowa, North Dakota, South Dakota, and
Wisconsin.
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new text begin (f) "Demand" means the quantity of motor fuel or other refined petroleum products from
the applicant's facilities that consumers in Minnesota and in contiguous states are willing
and able to purchase. Demand includes any resulting quantities placed in the applicant's
interim storage facilities.
new text end

new text begin (g) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (h) "Forecast period" means the 15 consecutive years following the year in which an
application is filed.
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new text begin (i) "Fuel efficiency" means the distance a motor vehicle is capable of traveling on one
gallon of motor fuel.
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new text begin (j) "Motor fuel" means a liquid fuel derived from petroleum and used to propel a motor
vehicle. Motor fuel does not include casinghead, absorption, condensation, or natural
gasoline, as defined in section 296A.01, subdivision 10.
new text end

new text begin (k) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
new text end

new text begin (l) "Other refined petroleum product" means a product, other than motor fuel, produced
from crude oil at a refinery.
new text end

new text begin (m) "Refinery" means a facility that processes crude oil into motor fuel and other refined
petroleum products.
new text end

new text begin (n) "Remote work" means an employment construct in which employees work from a
location other than the place of employment one or more days per week.
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new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to an applicant seeking a certificate of need
for a pipeline that transports crude oil, motor fuel, or other refined petroleum products.
new text end

new text begin Subd. 3. new text end

new text begin Demand forecasts; motor fuel. new text end

new text begin (a) An application must contain separate annual
demand forecasts for motor fuel from consumers for each year of the forecast period:
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new text begin (1) in Minnesota; and
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new text begin (2) in contiguous states.
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new text begin (b) The forecasts required under paragraph (a) must be derived from the following factors
using separate forecasts for each year of the forecast period:
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new text begin (1) population;
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new text begin (2) vehicle miles traveled, which must consider trends in remote work, mass transit
ridership, and vehicle miles traveled reduction targets established in the statewide multimodal
transportation plan under section 174.03, subdivision 1a;
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new text begin (3) fuel intensity and efficiency of motor vehicles using motor fuel;
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new text begin (4) penetration rates of electric vehicles, which must consider federal and state financial
incentives for vehicles and charging stations;
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new text begin (5) specific capacity expansion plans proposed by a refinery designated to receive crude
oil supplies from the proposed pipelines; and
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new text begin (6) world crude oil prices and crude oil prices from the proposed pipeline's supply sources
and the impact of prices on demand from consumers.
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new text begin (c) For purposes of the forecasts and data under paragraphs (a) and (b), the applicant
must specify underlying assumptions, including a narrative description of how changes in
the assumptions may affect the findings under paragraphs (a) and (b), with respect to:
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new text begin (1) crude oil prices in the United States, in Canada, and globally; and
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new text begin (2) changes in crude oil transportation infrastructure out of Western Canada and into or
out of Minnesota and contiguous states.
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new text begin Subd. 4. new text end

new text begin Demand forecasts; other petroleum products. new text end

new text begin (a) The application must
contain separate annual demand forecasts for other refined petroleum products from
consumers for each year of the forecast period:
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new text begin (1) in Minnesota; and
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new text begin (2) in contiguous states.
new text end

new text begin (b) The demand forecasts required under this subdivision must be derived from forecasts
of the factors influencing consumer demand for each product.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to an application for a certificate of need for a petroleum pipeline filed with the
Public Utilities Commission on or after that date.
new text end