HF 1365

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; providing grants and 
  1.3             incentives to motor fuel retailers who install pumps 
  1.4             and equipment to dispense cleaner fuel; requiring the 
  1.5             state to buy and operate clean-fuel vehicles when 
  1.6             available; requiring labeling for vehicles using clean 
  1.7             fuel; imposing misdemeanor penalty; appropriating 
  1.8             money; amending Minnesota Statutes 2000, sections 
  1.9             273.11, by adding a subdivision; 296A.07, subdivision 
  1.10            3; 296A.08, subdivision 2; and 297A.68, by adding a 
  1.11            subdivision; proposing coding for new law in Minnesota 
  1.12            Statutes, chapters 16C; 41A; and 239. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [16C.135] [CLEAN FUEL USE IN STATE VEHICLES.] 
  1.15     In all its motor vehicle purchases, the state shall buy 
  1.16  flexible-fuel vehicles that are capable of using clean fuel if 
  1.17  the desired or required model has a flexible-fuel engine 
  1.18  available.  For purposes of this section, "clean fuel" includes 
  1.19  only CNG, E85, LNG, and propane, as those terms are defined in 
  1.20  section 296A.01; B20, consisting of 20 percent biodiesel; and, 
  1.21  E-Diesel/Oxy-Diesel.  The applicable labeling requirements of 
  1.22  Code of Federal Regulations, title 16, sections 309.17, 309.20, 
  1.23  and 309.21 for "dual fueled vehicles" and "alternative fueled 
  1.24  vehicles," as those terms are defined in United States Code, 
  1.25  title 42, section 13211, apply to vehicles using clean fuel 
  1.26  under this section. 
  1.27     Sec. 2.  [41A.10] [CLEAN FUEL DEVELOPMENT GRANT PROGRAM.] 
  1.28     The commissioner of agriculture shall establish a program 
  1.29  to encourage motor fuel retail outlets to install tanks, pumps, 
  2.1   and other necessary equipment to dispense clean fuel.  For 
  2.2   purposes of this section, "clean fuel" includes only CNG, E85, 
  2.3   LNG, and propane, as those terms are defined in section 296A.01; 
  2.4   B20, consisting of 20 percent biodiesel; and, 
  2.5   E-Diesel/Oxy-Diesel.  The program must provide for use of funds 
  2.6   appropriated for the purpose as 50-percent-matching grants for 
  2.7   motor fuel service station retailers, not to exceed (1) $25,000 
  2.8   per retail site for a retailer who installs new equipment for 
  2.9   dispensing clean fuel, including costs of any new sign materials 
  2.10  relating to the clean fuel, and (2) $2,500 per retail site for a 
  2.11  retailer who converts existing petroleum-dispensing equipment to 
  2.12  equipment for dispensing clean fuel.  The state's share may be 
  2.13  no more than half the cost of installing the equipment and must 
  2.14  be matched by funds from private industry or other organizations 
  2.15  or persons interested in promoting clean fuel. 
  2.16     Sec. 3.  [239.797] [LABEL REQUIREMENTS FOR VEHICLE USING 
  2.17  CLEAN FUEL.] 
  2.18     Subdivision 1.  [FEDERAL REQUIREMENTS ADOPTED.] The 
  2.19  applicable labeling requirements of Code of Federal Regulations, 
  2.20  title 16, sections 309.17, 309.20, and 309.21 for "dual fueled 
  2.21  vehicles" and "alternative fueled vehicles," as those terms are 
  2.22  defined in United States Code, title 42, section 13211, apply to 
  2.23  vehicles using clean fuel.  "Clean fuel" has the meaning given 
  2.24  it in section 41A.10 
  2.25     Subd. 2.  [PENALTY.] A person who fails to comply with 
  2.26  subdivision 1 is guilty of a misdemeanor. 
  2.27     Sec. 4.  Minnesota Statutes 2000, section 273.11, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 20.  [VALUATION OF EQUIPMENT THAT DISPENSES CLEAN 
  2.30  FUEL.] (a) Property installed at a motor fuel retail outlet to 
  2.31  dispense clean fuel, including tanks, pumps, and other necessary 
  2.32  equipment, qualifies for a valuation exclusion for assessment 
  2.33  purposes under this subdivision.  "Clean fuel" has the meaning 
  2.34  given it in section 41A.10. 
  2.35     (b) The assessor shall estimate the market value of the 
  2.36  property in the assessment year immediately following the year 
  3.1   that the building permit was taken out or the taxpayer notified 
  3.2   the assessor that the improvement was to be made.  If the 
  3.3   estimated market value of the building has increased over the 
  3.4   prior year's assessment based on the clean fuel equipment 
  3.5   improvements, the assessor shall note the amount of the increase 
  3.6   on the property record and subtract that amount from the value 
  3.7   of the property in each year for five years after the 
  3.8   improvement has been made.  After that time, an amount equal to 
  3.9   20 percent of the excluded value must be added back in each of 
  3.10  the five subsequent years. 
  3.11     (c) The property owner must submit an application to the 
  3.12  assessor for treatment under this subdivision prior to July 1 of 
  3.13  any year in order to qualify for the treatment effective for 
  3.14  taxes payable in the following year. 
  3.15     Sec. 5.  Minnesota Statutes 2000, section 296A.07, 
  3.16  subdivision 3, is amended to read: 
  3.17     Subd. 3.  [RATE OF TAX.] The gasoline excise tax is imposed 
  3.18  at the following rates: 
  3.19     (1) before July 1, 2001, and after June 30, 2006, E85 is 
  3.20  taxed at the rate of 14.2 cents per gallon; 
  3.21     (2) M85 is taxed at the rate of 11.4 cents per gallon; and 
  3.22     (3) all other gasoline is taxed at the rate of 20 cents per 
  3.23  gallon. 
  3.24     Sec. 6.  Minnesota Statutes 2000, section 296A.08, 
  3.25  subdivision 2, is amended to read: 
  3.26     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  3.27  imposed at the following rates: 
  3.28     (1) Before July 1, 2001, and after June 30, 2006, liquefied 
  3.29  petroleum gas or propane is taxed at the rate of 15 cents per 
  3.30  gallon. 
  3.31     (2) Before July 1, 2001, and after June 30, 2006, liquefied 
  3.32  natural gas is taxed at the rate of 12 cents per gallon. 
  3.33     (3) Before July 1, 2001, and after June 30, 2006, 
  3.34  compressed natural gas is taxed at the rate of $1.739 per 
  3.35  thousand cubic feet; or 20 cents per gasoline equivalent, as 
  3.36  defined by the National Conference on Weights and Measures, 
  4.1   which is 5.66 pounds of natural gas. 
  4.2      (4) All other special fuel is taxed at the same rate as the 
  4.3   gasoline excise tax as specified in section 296A.07, subdivision 
  4.4   2.  The tax is payable in the form and manner prescribed by the 
  4.5   commissioner. 
  4.6      Sec. 7.  Minnesota Statutes 2000, section 297A.68, is 
  4.7   amended by adding a subdivision to read:  
  4.8      Subd. 35.  [EQUIPMENT AND MATERIALS FOR DISPENSING CLEAN 
  4.9   FUEL.] Clean fuel dispensing equipment and materials purchased 
  4.10  for dispensing clean fuel into motor vehicles at a motor fuel 
  4.11  retail outlet, are exempt.  "Clean fuel" has the meaning given 
  4.12  it in section 41A.10.  "Equipment and materials" includes tanks, 
  4.13  pumps, related sign materials, and other necessary equipment or 
  4.14  materials. 
  4.15     Sec. 8.  [APPROPRIATIONS AND TRANSFERS.] 
  4.16     (a) $500,000 for the fiscal year ending June 30, 2002, and 
  4.17  $500,000 for the fiscal year ending June 30, 2003, are 
  4.18  appropriated from the general fund to the commissioner of 
  4.19  agriculture for purposes of section 2, to be available through 
  4.20  June 30, 2003.  In addition to the purposes stated in section 2, 
  4.21  the commissioner may spend a portion of this appropriation to 
  4.22  buy mass media broadcasts, solicit public service announcements, 
  4.23  and use consumer direct marketing to promote the use of clean 
  4.24  fuel and to inform the public of the advantages, benefits, and 
  4.25  requirements of this act.  
  4.26     (b) $220,000 for the fiscal year ending June 30, 2002, and 
  4.27  $500,000 for the fiscal year ending June 30, 2003, are 
  4.28  appropriated from the general fund and transferred to the 
  4.29  highway user tax distribution fund.  These appropriations and 
  4.30  transfers are intended to reimburse the highway user tax 
  4.31  distribution fund for the loss of tax proceeds under sections 4 
  4.32  and 5 for fiscal years 2002 and 2003. 
  4.33     Sec. 9.  [EFFECTIVE DATE.] 
  4.34     Section 3 is effective for taxes payable in 2002 and 
  4.35  thereafter.  Section 4 is effective July 1, 2001.