HF 2081

as introduced - 89th Legislature (2015 - 2016) Posted on 03/23/2015 01:24pm

A bill for an act
relating to electric and compressed natural gas vehicles; requiring certain public
utilities to file plans with the Public Utilities Commission promoting electric
and compressed natural gas vehicles and to recover costs of such promotion;
providing rebates and incentives to electric and compressed natural gas vehicle
purchasers and salespersons; appropriating money; amending Minnesota Statutes
2014, section 216B.16, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 216B.

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

Section 1.

Minnesota Statutes 2014, section 216B.16, is amended by adding a
subdivision to read:

new text begin Subd. 6e. new text end

new text begin Incentive plan for electric and compressed natural gas vehicles. new text end

new text begin (a)
The commission shall order public utilities that are required to develop an electric and
compressed natural gas vehicle promotion program under section 216B.1615 to develop
and submit for commission approval, by February 1, 2016, incentive plans that describe
(1) the method of recovery and accounting for utility expenditures related to the promotion
of electric and compressed natural gas vehicles, and (2) the savings that result from the
purchase of electric and compressed natural gas vehicles by its customers. In developing
the incentive plans, the commission shall ensure the effective involvement of interested
parties.
new text end

new text begin (b) In approving incentive plans, the commission shall consider:
new text end

new text begin (1) whether the plan is likely to increase utility investment in electric and compressed
natural gas vehicle promotion;
new text end

new text begin (2) whether the plan is compatible with the interests of utility ratepayers and other
interested parties;
new text end

new text begin (3) whether the plan links the incentive to the utility's performance in increasing the
number of electric and compressed natural gas vehicles purchased by its customers; and
new text end

new text begin (4) whether the plan conflicts with other provisions of this chapter.
new text end

new text begin (c) The commission may set rates to encourage the vigorous and effective
implementation of a utility's electric and compressed natural gas vehicle promotion
program under section 216B.1615. The commission may:
new text end

new text begin (1) increase or decrease any otherwise allowed rate of return on net investment
based upon the utility's skill, efforts, and success in increasing the number of electric and
compressed natural gas vehicles purchased by its customers;
new text end

new text begin (2) share between ratepayers and utilities the net savings resulting from increasing
the number of utility customers purchasing electric and compressed natural gas vehicles to
the extent justified by the utility's skill, efforts, and success in increasing the number of
electric and compressed natural gas vehicles purchased by its customers; and
new text end

new text begin (3) adopt any mechanism that satisfies the criteria of this subdivision, such that an
increase in the number of electric and compressed natural gas vehicles purchased by a
utility's customers is a preferred outcome for the public utility considering the impact of
electric and compressed natural gas vehicles on the earnings of the public utility.
new text end

new text begin (d) A utility subject to this subdivision that does not provide natural gas service is
not required to develop an incentive plan to promote the purchase of compressed natural
gas vehicles.
new text end

new text begin (e) For the purposes of this subdivision:
new text end

new text begin (1) "electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraph (a); and
new text end

new text begin (2) "compressed natural gas vehicle" has the meaning given in section 216B.1615,
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [216B.1615] ELECTRIC AND COMPRESSED NATURAL GAS
VEHICLE PROMOTION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section
216B.1616, the terms defined in this subdivision have the meanings given them.
new text end

new text begin (b) "Compressed natural gas vehicle" means a passenger car, bus, school bus, or
truck that is fueled entirely by natural gas compressed to less than one percent of the
volume it occupies at standard atmospheric pressure.
new text end

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

new text begin (d) "Electric vehicle charging station" means a public or private parking space
that is served by battery charging station equipment that has as its primary purpose the
transfer of electric energy by conductive or inductive means to a battery or other energy
storage device in an electric vehicle.
new text end

new text begin (e) "Electric vehicle infrastructure" means structures, machinery, and equipment
necessary and integral to support an electric vehicle, including electric vehicle charging
stations and battery exchange stations.
new text end

new text begin (f) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin (g) "Vehicle-to-grid technology" means technology that allows electricity to flow
from electric vehicle batteries to the electrical grid, and to be aggregated and dispatched in
order to assist the balancing of electricity supply and demand.
new text end

new text begin Subd. 2. new text end

new text begin Goal. new text end

new text begin It is a state goal that, by the end of 2020, there be at least 30,000
electric and compressed natural gas vehicles registered in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Program. new text end

new text begin (a) By February 1, 2016, each public utility serving a city of the
first class must file with the commission a program to promote (1) the purchase of electric
and compressed natural gas vehicles by residential, commercial, and industrial customers,
nonprofit organizations, and political subdivisions, and (2) the construction of electric and
compressed natural gas vehicle infrastructure.
new text end

new text begin (b) The program may include, but is not limited to, the following elements:
new text end

new text begin (1) educational resources for individuals, electric and compressed natural gas
vehicle dealers, multifamily housing developers and property management companies,
and vehicle fleet managers, including printed materials, a Web site, and employees who
conduct on-site education;
new text end

new text begin (2) advertising and promotional materials, including software;
new text end

new text begin (3) a onetime bill credit of $30 or more for electric vehicle owners who purchase
electricity under the public utility's time-of-day or off-peak rate for electric vehicle
recharging;
new text end

new text begin (4) rebates for electric and compressed natural gas vehicle purchase or leasing;
new text end

new text begin (5) rebates for installing electric vehicle charging stations at residences or
workplaces; and
new text end

new text begin (6) a pilot program for implementing vehicle-to-grid technology.
new text end

new text begin Subd. 4. new text end

new text begin Commission review. new text end

new text begin The commission shall review the plans submitted
under this section for their effectiveness in promoting electric and compressed natural gas
vehicle purchases among utility customers, and for the degree to which they are likely to
contribute significantly to achieving the state goal for electric and compressed natural gas
vehicle purchases under subdivision 2. The commission may approve, modify, or reject
a plan filed under this section. If the commission rejects a utility's plan, the utility must
submit a new plan for commission review within 75 days of the notice of rejection.
new text end

new text begin Subd. 5. new text end

new text begin Implementation. new text end

new text begin Within 90 days of commission approval of a utility's
plan filed under this section, the utility shall implement the plan.
new text end

new text begin Subd. 6. new text end

new text begin Cost recovery. new text end

new text begin Notwithstanding section 216B.16, subdivision 8, clause
(3), the commission may approve the portion of any rate which makes a direct or indirect
allowance for expenses incurred by a public utility to provide a public advertisement as
part of a promotion program approved by the commission under this section.
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin Beginning one year after implementing a program approved
by the commission under this section, each public utility implementing a plan under this
section shall report annually to the chairs and ranking minority members of the senate
and house of representatives committees with primary jurisdiction over energy policy
on its activities to promote electric and compressed natural gas vehicle purchases. The
report shall include expenditures for each element of the plan and the number of electric
and compressed natural gas vehicles purchased by utility customers, reported separately
for individuals and fleets.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [216B.1616] ELECTRIC AND COMPRESSED NATURAL GAS
VEHICLE REBATES AND INCENTIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "Dealer" has the meaning given in section 80E.03, subdivision 3.
new text end

new text begin (2) "Salesperson" means a salesperson who earns a commission or is otherwise the
salesperson of record for the sale of an electric or compressed natural gas vehicle to
a purchaser who the commissioner determines is eligible to receive a rebate under this
section.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) The purchaser of an electric or compressed natural gas
vehicle is eligible for a $3,000 rebate if:
new text end

new text begin (1) the electric or compressed natural gas vehicle:
new text end

new text begin (i) has not been previously owned;
new text end

new text begin (ii) has not been modified from the original manufacturer's specifications; and
new text end

new text begin (iii) is purchased after the effective date of this act for use by the purchaser and
not for resale;
new text end

new text begin (2) the purchaser:
new text end

new text begin (i) is a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph
(a), when the electric and compressed natural gas vehicle is purchased;
new text end

new text begin (ii) is a business that has a valid address in Minnesota from which business is
conducted;
new text end

new text begin (iii) is a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) is a political subdivision of the state; and
new text end

new text begin (3) the purchaser:
new text end

new text begin (i) has not received a rebate or tax credit for the purchase of the same electric or
compressed natural gas vehicle from another state; and
new text end

new text begin (ii) registers the electric or compressed natural gas vehicle in Minnesota.
new text end

new text begin (b) A salesperson who conducts business from a valid address in Minnesota is
eligible to receive a cash incentive of $250 per electric or compressed natural gas vehicle
sold, provided the salesperson files a timely and complete application that is approved
by the commissioner under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Program administration. new text end

new text begin (a) Applications for a rebate and incentive under
this section shall be filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner shall develop administrative procedures governing the
application, rebate, and incentive award process. Applications will be reviewed and
rebates and incentives awarded by the commissioner on a first-come, first-served basis.
new text end

new text begin (c) A dealer or salesperson must certify to the commissioner, in a manner specified
by the commissioner, that an electric or compressed natural gas vehicle and its purchaser
meet the eligibility requirements in subdivision 2.
new text end

new text begin (d) No single business may receive rebates under this section for more than 20
electric or compressed natural gas vehicles purchased.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2016 and $....... in fiscal year 2017 are appropriated from the
general fund to the commissioner of commerce to pay rebates to eligible electric or
compressed natural gas vehicle purchasers and incentives to eligible salespersons under
section 3, and to pay the reasonable costs of the department to administer section 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end