HF 2301

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the environment; providing sales tax 
  1.3             exemptions; adopting California vehicle emissions 
  1.4             standards; amending Minnesota Statutes 2003 
  1.5             Supplement, section 297B.03; proposing coding for new 
  1.6             law in Minnesota Statutes, chapter 116. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [116.601] [DEFINITIONS.] 
  1.9      Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.10  116.601 to 116.607, the definitions in this section have the 
  1.11  meanings given. 
  1.12     Subd. 2.  [ADVANCED TECHNOLOGY PARTIAL ZERO EMISSION 
  1.13  VEHICLE.] "Advanced technology partial zero emission vehicle" 
  1.14  means a vehicle certified as an advanced technology partial zero 
  1.15  emission vehicle pursuant to the California Air Resources Board 
  1.16  vehicle standards for the applicable model year. 
  1.17     Subd. 3.  [CALIFORNIA LOW EMISSION VEHICLE 
  1.18  PROGRAM.] "California low emission vehicle program" means the 
  1.19  second phase of the low emission vehicle program being 
  1.20  implemented in the state of California, pursuant to the 
  1.21  provisions of the federal Clean Air Act and the California Code 
  1.22  of Regulations. 
  1.23     Subd. 4.  [FEDERAL CLEAN AIR ACT.] "Federal Clean Air Act" 
  1.24  means the federal Clean Air Act, United States Code, title 42, 
  1.25  section 7401, et seq., and any subsequent amendments or 
  1.26  supplements to that act. 
  2.1      Subd. 5.  [LOW EMISSION VEHICLE REVIEW COMMISSION; 
  2.2   COMMISSION.] "Low Emission Vehicle Review Commission" or 
  2.3   "commission" means the commission established by section 116.605.
  2.4      Subd. 6.  [PARTIAL ZERO EMISSION VEHICLE.] "Partial zero 
  2.5   emission vehicle" means a vehicle certified as a partial zero 
  2.6   emission vehicle pursuant to the California Air Resources Board 
  2.7   vehicle standards for the applicable model year. 
  2.8      Subd. 7.  [STATE IMPLEMENTATION PLAN.] "State 
  2.9   implementation plan" means the state implementation plan for 
  2.10  national ambient air quality standards adopted for Minnesota 
  2.11  pursuant to the federal Clean Air Act. 
  2.12     Subd. 8.  [ZERO EMISSION VEHICLE.] "Zero emission vehicle" 
  2.13  means a vehicle certified as a zero emission vehicle pursuant to 
  2.14  the California Air Resources Board zero emission vehicle 
  2.15  standards for the applicable model year, but does not include an 
  2.16  advanced technology partial zero emission vehicle or a partial 
  2.17  zero emission vehicle. 
  2.18     Subd. 9.  [ZERO EMISSION VEHICLE REQUIREMENT.] "Zero 
  2.19  emission vehicle requirement" means the percentage or number of 
  2.20  those vehicles certified as zero emission vehicles pursuant to 
  2.21  the California Air Resources Board vehicle standards and 
  2.22  required to be delivered by a manufacturer for sale or lease for 
  2.23  the applicable model year and any additional percentages or 
  2.24  numbers of advanced technology partial zero emission vehicles or 
  2.25  partial zero emission vehicles that may be delivered by a 
  2.26  manufacturer for sale or lease to satisfy the zero emission 
  2.27  vehicle requirement established by the California Air Resources 
  2.28  Board in lieu of vehicles that meet the pure zero emission 
  2.29  vehicle standard.  
  2.30     Sec. 2.  [116.603] [IMPLEMENTATION; CALIFORNIA LOW EMISSION 
  2.31  VEHICLE PROGRAM.] 
  2.32     (a) Notwithstanding any provision of a state implementation 
  2.33  plan submitted by the commissioner to the United States 
  2.34  Environmental Protection Agency pursuant to the requirements of 
  2.35  the federal "Clean Air Act Amendments of 1990," United States 
  2.36  Code, title 42, section 7403, et seq., to the contrary, the 
  3.1   agency shall implement the California low emission vehicle 
  3.2   program in the state beginning on January 1, 2009, except as 
  3.3   provided pursuant to sections 116.606 and 116.607. 
  3.4      (b) The commissioner, within 30 days after a proposed major 
  3.5   substantive change to the California low emission vehicle 
  3.6   program that, if adopted, would necessitate a corresponding 
  3.7   substantive change to the program in Minnesota adopted pursuant 
  3.8   to paragraph (a), shall provide written notice and a summary of 
  3.9   the proposed substantive change to the senate and house of 
  3.10  representatives committees with jurisdiction over environmental 
  3.11  and motor vehicle policy and finance. 
  3.12     (c) The commissioner shall adopt rules necessary to 
  3.13  implement the California low emission vehicle program beginning 
  3.14  on January 1, 2009. 
  3.15     Sec. 3.  [116.604] [QUALIFICATIONS.] 
  3.16     Subdivision 1.  [CREDIT BANK.] (a) The commissioner shall 
  3.17  establish a zero emission vehicle credit bank to allow 
  3.18  manufacturers to earn and bank vehicle equivalent credits for 
  3.19  any advanced technology partial zero emission vehicle or partial 
  3.20  zero emission vehicle produced and delivered for sale or lease 
  3.21  in the state on or after January 1, 1999, through December 31, 
  3.22  2008. 
  3.23     (b) In establishing the credit bank required by this 
  3.24  subdivision, the commissioner shall use the highest multiplier 
  3.25  used by the California Air Resources Board for determining the 
  3.26  allowable vehicle equivalent credits for each advanced 
  3.27  technology partial zero emission vehicle or partial zero 
  3.28  emission vehicle delivered for sale or lease in the state by a 
  3.29  manufacturer on or after January 1, 1999, until July 1, 2004. 
  3.30     (c) Beginning on July 1, 2004, the commissioner shall use 
  3.31  the multiplier used by the California Air Resources Board for 
  3.32  the applicable model year for each advanced technology partial 
  3.33  zero emission vehicle or partial zero emission vehicle delivered 
  3.34  for sale or lease in the state by a manufacturer on or after 
  3.35  July 1, 2004, through December 31, 2008. 
  3.36     Subd. 2.  [LIST OF VEHICLES.] (a) By January 1, 2005, the 
  4.1   commissioner shall publish a list in the State Register of the 
  4.2   make and model of those motor vehicles that qualify as advanced 
  4.3   technology partial zero emission vehicles or partial zero 
  4.4   emission vehicles for the 1999 to 2003 model years. 
  4.5      (b) Annually thereafter, the commissioner shall publish a 
  4.6   list in the State Register of the make and model of those motor 
  4.7   vehicles that qualify as advanced technology partial zero 
  4.8   emission vehicles or partial zero emission vehicles for that 
  4.9   respective model year. 
  4.10     (c) The commissioner may revise any list published pursuant 
  4.11  to this paragraph as necessary to comply with the California Air 
  4.12  Resources Board vehicle standards for the applicable model year. 
  4.13     Subd. 3.  [EXPEDITED RULES.] The commissioner shall adopt 
  4.14  expedited rules under section 14.389 necessary to establish a 
  4.15  zero emission vehicle credit bank under subdivision 1.  These 
  4.16  rules may include, but need not be limited to, the documentation 
  4.17  to be submitted by a manufacturer to determine eligibility and 
  4.18  participation in the credit bank and, notwithstanding section 
  4.19  16A.1283, fees for administrative services provided to implement 
  4.20  the zero emission vehicle credit bank to be assessed to those 
  4.21  manufacturers seeking to earn and bank credits.  The rules must 
  4.22  be in effect for a period not to exceed 270 days after their 
  4.23  effective date, except the rules must not be in effect on July 
  4.24  1, 2005.  The rules must thereafter be amended, adopted, or 
  4.25  readopted as permanent rules as the commissioner determines is 
  4.26  necessary in accordance with chapter 14. 
  4.27     Subd. 4.  [EXPIRATION.] This section expires upon the 
  4.28  enactment of a law directing the agency to implement the 
  4.29  National Low Emission Vehicle Program pursuant to section 
  4.30  116.606. 
  4.31     Sec. 4.  [116.605] [COMMISSION.] 
  4.32     Subdivision 1.  [COMPOSITION; FUNCTIONING.] (a) The Low 
  4.33  Emission Vehicle Review Commission is established consisting of 
  4.34  15 members as follows:  the division head of the Environmental 
  4.35  and Occupational Health Division at the University of Minnesota 
  4.36  School of Public Health or the division head's designee, a 
  5.1   representative of the agency appointed by the commissioner, one 
  5.2   member of the house of representatives appointed by the speaker, 
  5.3   one member of the senate appointed by the president of the 
  5.4   senate, and 11 public members. 
  5.5      (b) The 11 public members, to be appointed by the governor 
  5.6   with the advice and consent of the senate, are as follows:  two 
  5.7   members representing manufacturers of automobiles sold within 
  5.8   the state, two members representing automotive retailers and 
  5.9   recommended to the governor by the Automotive Retailers 
  5.10  Association of Minnesota, two members of recognized statewide 
  5.11  environmental organizations, one member representing the 
  5.12  Minnesota Public Interest Research Group, one member 
  5.13  representing the University of Minnesota Institute of Technology 
  5.14  and recommended to the governor by the dean of the institute, 
  5.15  one member representing the American Lung Association of 
  5.16  Minnesota, one member representing the Central States Air 
  5.17  Resource Agencies, and one member representing a zero emission 
  5.18  vehicle technology company. 
  5.19     (c) The commission is governed by section 15.059, except 
  5.20  that the members are compensated only for expenses and the 
  5.21  commission does not expire. 
  5.22     (d) The division head of the Environmental and Occupational 
  5.23  Health Division of the University of Minnesota School of Public 
  5.24  Health, or the division head's designee, shall serve as chair of 
  5.25  the commission.  The commission shall meet at the call of the 
  5.26  chair, and the commission shall organize as soon as practicable 
  5.27  after appointment of its members. 
  5.28     (e) The commission may use the services of the employees of 
  5.29  any state department, board, commission, or agency, as it may 
  5.30  require and as may be available for its purposes, and to employ 
  5.31  stenographic and clerical assistance and incur traveling and 
  5.32  other miscellaneous expenses as necessary in order to perform 
  5.33  its duties, within the limits of funds appropriated or otherwise 
  5.34  made available to it for its purposes. 
  5.35     Subd. 2.  [DUTIES.] (a) The commission shall study advances 
  5.36  made in zero emission vehicle and advanced technology partial 
  6.1   zero emission vehicle technologies.  The commission shall also 
  6.2   study the development of hydrogen fuel cell technology, the 
  6.3   infrastructure required for its use in motor vehicles, the 
  6.4   development of that infrastructure, and the availability of 
  6.5   hydrogen fuel cell vehicles to the public.  In studying these 
  6.6   issues, the commission shall review any advice prepared by the 
  6.7   independent expert review panel established to advise the 
  6.8   California Air Resources Board concerning advances made in zero 
  6.9   emission vehicle and advanced technology partial zero emission 
  6.10  vehicle technologies. 
  6.11     (b) The commission shall evaluate any proposed or adopted 
  6.12  changes made by the California Air Resources Board to the 
  6.13  California low emission vehicle program and the potential 
  6.14  effects of these changes on the implementation of the program in 
  6.15  this state.  If the California Air Resources Board has not acted 
  6.16  prior to the start of the 2008 model year to revise the 
  6.17  requirements under the alternative compliance path for the 
  6.18  amount of fuel cell vehicles required by a manufacturer 
  6.19  beginning for the 2012 model year from a state-specific 
  6.20  requirement to a nationwide requirement, the commission shall 
  6.21  make a recommendation as to whether the state should implement 
  6.22  the California low emission vehicle program beginning on January 
  6.23  1, 2009, or if the state should instead continue with 
  6.24  implementation of the National Low Emission Vehicle Program. 
  6.25     (c) The commission shall determine whether the incentive 
  6.26  provided by the state pursuant to section 297B.03, clauses (14) 
  6.27  and (15), is sufficient to encourage the purchase of zero 
  6.28  emission vehicles.  The commission shall make recommendations to 
  6.29  the governor and the legislature setting forth any additional 
  6.30  incentives determined to be necessary to encourage the purchase 
  6.31  of zero emission vehicles or advanced technology partial zero 
  6.32  emission vehicles in order to increase the effectiveness of the 
  6.33  implementation of the California low emission vehicle program in 
  6.34  the state. 
  6.35     (d) The commission shall evaluate the feasibility of the 
  6.36  zero emission vehicle requirement of the California low emission 
  7.1   vehicle program and make a determination whether the zero 
  7.2   emission vehicle requirement is achievable in this state 
  7.3   beginning on January 1, 2009.  This evaluation shall include an 
  7.4   examination of zero emission vehicle technology, price, 
  7.5   performance, consumer acceptability, and implementation issues 
  7.6   relating to the use of zero emission vehicles in the state. 
  7.7      Subd. 3.  [REPORT.] (a) Within one year after organizing, 
  7.8   the commission shall submit a report to the governor, the 
  7.9   commissioner, and the legislature:  
  7.10     (1) summarizing the activities and findings of the 
  7.11  commission to date; 
  7.12     (2) setting forth any recommendations for additional 
  7.13  incentives determined to be necessary to encourage the purchase 
  7.14  of zero emission vehicles or advanced technology partial zero 
  7.15  emission vehicles; and 
  7.16     (3) setting forth any recommendations that would increase 
  7.17  the effectiveness of the implementation of the California low 
  7.18  emission vehicle program in the state. 
  7.19     (b) No later than January 1, 2008, the commission shall 
  7.20  submit a final report to the governor, the commissioner, and the 
  7.21  senate and house of representatives committees with jurisdiction 
  7.22  over environmental and motor vehicle policy and finance: 
  7.23     (1) summarizing the studies and evaluations conducted 
  7.24  pursuant to subdivision 2; 
  7.25     (2) setting forth any recommendations for additional 
  7.26  incentives to encourage the purchase of zero emission vehicles 
  7.27  or advanced technology partial zero emission vehicles; and 
  7.28     (3) setting forth a recommendation as to whether: 
  7.29     (i) pursuant to subdivision 2, paragraph (b), the 
  7.30  California low emission vehicle program should be implemented in 
  7.31  the state beginning on January 1, 2009, or if the state should 
  7.32  instead continue with implementation of the National Low 
  7.33  Emission Vehicle Program; and 
  7.34     (ii) if the commission recommends that the California low 
  7.35  emission vehicle program should be implemented in the state, 
  7.36  whether the zero emission vehicle requirements of the program 
  8.1   should be implemented in the state based on the evaluation 
  8.2   conducted pursuant to subdivision 2, paragraph (d). 
  8.3      Sec. 5.  [116.606] [RECOMMENDATION NOT TO IMPLEMENT.] 
  8.4      (a) If the Low Emission Vehicle Review Commission, in the 
  8.5   report required pursuant to section 116.605, subdivision 3, 
  8.6   paragraph (b), recommends, pursuant to section 116.605, 
  8.7   subdivision 3, paragraph (b), clause (3), item (i), that the 
  8.8   state should not implement the California low emission vehicle 
  8.9   program and instead continue with implementation of the National 
  8.10  Low Emission Vehicle Program, the agency shall implement the 
  8.11  California low emission vehicle program unless a law is enacted 
  8.12  directing the agency to implement the National Low Emission 
  8.13  Vehicle Program. 
  8.14     (b) Upon the passage of such a law, the commissioner shall 
  8.15  adopt expedited rules under section 14.389 necessary to continue 
  8.16  implementation of the National Low Emission Vehicle Program. 
  8.17  The expedited rules shall be in effect for a period not to 
  8.18  exceed 270 days after their effective date.  The expedited rules 
  8.19  shall thereafter be amended, adopted, or readopted as permanent 
  8.20  rules as the commissioner determines is necessary in accordance 
  8.21  with chapter 14. 
  8.22     Sec. 6.  [116.607] [RECOMMENDATION TO IMPLEMENT WITHOUT 
  8.23  ZERO EMISSION REQUIREMENT.] 
  8.24     (a) If the Low Emission Vehicle Review Commission 
  8.25  recommends in the report required pursuant to section 116.605, 
  8.26  subdivision 3, paragraph (b), that the state should implement 
  8.27  the California low emission vehicle program without the zero 
  8.28  emission vehicle requirement, the commissioner may make a 
  8.29  determination to accept or reject the recommendation of the 
  8.30  commission concerning the implementation of the zero emission 
  8.31  vehicle requirement. 
  8.32     (b) The commissioner shall adopt expedited rules under 
  8.33  section 14.389 necessary to implement the provisions of 
  8.34  paragraph (a).  The expedited rules shall be in effect for a 
  8.35  period not to exceed 270 days after their effective date.  The 
  8.36  expedited rules shall thereafter be amended, adopted, or 
  9.1   readopted by the commissioner as the commissioner determines is 
  9.2   necessary in accordance with chapter 14. 
  9.3      (c) The commissioner shall, in writing, notify the governor 
  9.4   and the senate and house of representatives committees of the 
  9.5   legislature with jurisdiction over environmental and motor 
  9.6   vehicle policy and finance of: 
  9.7      (1) the determination made pursuant to paragraph (a); and 
  9.8      (2) the adoption of the expedited rules pursuant to 
  9.9   paragraph (b). 
  9.10     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  9.11  297B.03, is amended to read: 
  9.12     297B.03 [EXEMPTIONS.] 
  9.13     There is specifically exempted from the provisions of this 
  9.14  chapter and from computation of the amount of tax imposed by it 
  9.15  the following:  
  9.16     (1) purchase or use, including use under a lease purchase 
  9.17  agreement or installment sales contract made pursuant to section 
  9.18  465.71, of any motor vehicle by the United States and its 
  9.19  agencies and instrumentalities and by any person described in 
  9.20  and subject to the conditions provided in section 297A.67, 
  9.21  subdivision 11; 
  9.22     (2) purchase or use of any motor vehicle by any person who 
  9.23  was a resident of another state or country at the time of the 
  9.24  purchase and who subsequently becomes a resident of Minnesota, 
  9.25  provided the purchase occurred more than 60 days prior to the 
  9.26  date such person began residing in the state of Minnesota and 
  9.27  the motor vehicle was registered in the person's name in the 
  9.28  other state or country; 
  9.29     (3) purchase or use of any motor vehicle by any person 
  9.30  making a valid election to be taxed under the provisions of 
  9.31  section 297A.90; 
  9.32     (4) purchase or use of any motor vehicle previously 
  9.33  registered in the state of Minnesota when such transfer 
  9.34  constitutes a transfer within the meaning of section 118, 331, 
  9.35  332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 
  9.36  1563(a) of the Internal Revenue Code of 1986, as amended through 
 10.1   December 31, 1999; 
 10.2      (5) purchase or use of any vehicle owned by a resident of 
 10.3   another state and leased to a Minnesota based private or for 
 10.4   hire carrier for regular use in the transportation of persons or 
 10.5   property in interstate commerce provided the vehicle is titled 
 10.6   in the state of the owner or secured party, and that state does 
 10.7   not impose a sales tax or sales tax on motor vehicles used in 
 10.8   interstate commerce; 
 10.9      (6) purchase or use of a motor vehicle by a private 
 10.10  nonprofit or public educational institution for use as an 
 10.11  instructional aid in automotive training programs operated by 
 10.12  the institution.  "Automotive training programs" includes motor 
 10.13  vehicle body and mechanical repair courses but does not include 
 10.14  driver education programs; 
 10.15     (7) purchase of a motor vehicle for use as an ambulance by 
 10.16  an ambulance service licensed under section 144E.10; 
 10.17     (8) purchase of a motor vehicle by or for a public library, 
 10.18  as defined in section 134.001, subdivision 2, as a bookmobile or 
 10.19  library delivery vehicle; 
 10.20     (9) purchase of a ready-mixed concrete truck; 
 10.21     (10) purchase or use of a motor vehicle by a town for use 
 10.22  exclusively for road maintenance, including snowplows and dump 
 10.23  trucks, but not including automobiles, vans, or pickup trucks; 
 10.24     (11) purchase or use of a motor vehicle by a corporation, 
 10.25  society, association, foundation, or institution organized and 
 10.26  operated exclusively for charitable, religious, or educational 
 10.27  purposes, except a public school, university, or library, but 
 10.28  only if the vehicle is: 
 10.29     (i) a truck, as defined in section 168.011, a bus, as 
 10.30  defined in section 168.011, or a passenger automobile, as 
 10.31  defined in section 168.011, if the automobile is designed and 
 10.32  used for carrying more than nine persons including the driver; 
 10.33  and 
 10.34     (ii) intended to be used primarily to transport tangible 
 10.35  personal property or individuals, other than employees, to whom 
 10.36  the organization provides service in performing its charitable, 
 11.1   religious, or educational purpose; 
 11.2      (12) purchase of a motor vehicle for use by a transit 
 11.3   provider exclusively to provide transit service is exempt if the 
 11.4   transit provider is either (i) receiving financial assistance or 
 11.5   reimbursement under section 174.24 or 473.384, or (ii) operating 
 11.6   under section 174.29, 473.388, or 473.405; 
 11.7      (13) purchase or use of a motor vehicle by a qualified 
 11.8   business, as defined in section 469.310, located in a job 
 11.9   opportunity building zone, if the motor vehicle is principally 
 11.10  garaged in the job opportunity building zone and is primarily 
 11.11  used as part of or in direct support of the person's operations 
 11.12  carried on in the job opportunity building zone.  The exemption 
 11.13  under this clause applies to sales, if the purchase was made and 
 11.14  delivery received during the duration of the job opportunity 
 11.15  building zone.  The exemption under this clause also applies to 
 11.16  any local sales and use tax.; 
 11.17     (14) purchase or use of zero emission vehicles sold on or 
 11.18  after January 1, 2005, is exempt if the vehicle has been 
 11.19  certified by the commissioner of the Pollution Control Agency 
 11.20  that the make and model of the vehicle is a zero emission 
 11.21  vehicle and is eligible for the exemption.  As used in this 
 11.22  clause, "zero emission vehicle" means a vehicle certified as a 
 11.23  zero emission vehicle according to the California Air Resources 
 11.24  Board zero emission vehicle standards for the applicable model 
 11.25  year, but does not include any other type of vehicle that may be 
 11.26  delivered by a manufacturer for sale or lease to satisfy the 
 11.27  zero emission vehicle requirement established by the California 
 11.28  Air Resources Board in lieu of a vehicle that qualifies as a 
 11.29  pure zero emission vehicle; and 
 11.30     (15) purchase or use of a qualified hybrid vehicle sold on 
 11.31  or after January 1, 2005, is exempt if the vehicle has been 
 11.32  certified by the commissioner of the Pollution Control Agency 
 11.33  that the make and model of the motor vehicle is a qualified 
 11.34  hybrid vehicle and eligible for the exemption.  As used in this 
 11.35  clause, "qualified hybrid vehicle" means a motor vehicle, other 
 11.36  than an electric vehicle, which draws propulsion energy from 
 12.1   both an internal combustion engine and an energy storage device, 
 12.2   and employs a regenerative braking system to recover waste 
 12.3   energy to charge the energy storage device that is providing 
 12.4   propulsion energy. 
 12.5      Sec. 8.  [EXPIRATION.] 
 12.6      If the sale and use of reformulated gasoline other than 
 12.7   that certified by the United States Environmental Protection 
 12.8   Agency pursuant to United States Code, title 42, section 7545, 
 12.9   subsection (k), for sale and use in states other than the state 
 12.10  of California, is required by federal law, rule, regulation, 
 12.11  agency ruling, order, opinion, or other action or court order to 
 12.12  be sold for use, and used, in gasoline-fueled motor vehicles in 
 12.13  Minnesota because the state has implemented the California low 
 12.14  emission vehicle program pursuant to this act, sections 116.601 
 12.15  to 116.607 shall expire 180 days from the date of enactment of 
 12.16  the federal law, adoption of the federal rule or regulation, 
 12.17  issuance of the agency ruling, order, opinion, or other action, 
 12.18  or issuance of the court order. 
 12.19     Sec. 9.  [EFFECTIVE DATE.] 
 12.20     This act is effective July 1, 2004.