HF 3516

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; requiring increasing proportion of new motor vehicles sold
to be flexible-fuel vehicles; providing for recovery by utilities of installation
costs for plug-in hybrid electric vehicle infrastructure; requiring notice of state's
procurement policy in bid documents; establishing task force to accelerate
purchase of plug-in hybrid electric vehicles; establishing commission to develop
incentive package for re-use of St. Paul??a??a??s Ford plant; requiring Public Utilities
Commission to open investigative proceeding and to order utility to conduct
a study; appropriating money for a grant; proposing coding for new law in
Minnesota Statutes, chapters 80E; 216B.

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

Section 1.

new text begin [80E.35] FLEXIBLE FUEL VEHICLE MANDATE.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to any manufacturer who grants a
valid sales and service agreement, franchise, or contract to a dealer in this state.
new text end

new text begin Subd. 2. new text end

new text begin Mandate. new text end

new text begin In calendar year 2008, ten percent of a manufacturer's new
motor vehicles offered for sale in this state must be flexible-fuel vehicles. The percentage
of new motor vehicles offered for sale in this state that must be flexible-fuel vehicles is 15
percent in 2009, 20 percent in 2010, 25 percent in 2011, and 30 percent in 2012.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, "flexible-fuel vehicle" means a
motor vehicle that operates on gasoline and one or more alternative fuels.
new text end

new text begin (b) As used in this section, "alternative fuel" has the meaning given in United States
Code, title 42, section 13211(3).
new text end

Sec. 2.

new text begin [216B.1644] COST RECOVERY OF INVESTMENTS IN PLUG-IN
HYBRID ELECTRIC VEHICLE INFRASTRUCTURE.
new text end

new text begin (a) Expenses incurred by a utility to install infrastructure necessary to connect
plug-in hybrid electric vehicles (PHEV's) to the electrical grid to allow the vehicles to
recharge and to also allow the utility to purchase electricity from PHEV's are recoverable
from ratepayers of the utility. Upon petition by a utility, the commission shall approve or
approve as modified a rate schedule providing for the automatic adjustment of charges
to recover the costs of installing such infrastructure that have been approved by the
commission.
new text end

new text begin (b) As used in this section and sections 3 to 6, "plug-in hybrid electric vehicle
(PHEV)" means a vehicle containing an internal combustion engine that also allows
power to be delivered to the drive wheels by a battery-powered electric motor, and that
meets applicable federal motor vehicle safety standards. When connected to the electrical
grid via a two-way electrical outlet, the vehicle must be able to recharge its battery and
to transfer electricity to a utility. The vehicle must have the ability to travel at least 20
miles powered substantially by electricity.
new text end

Sec. 3. new text begin PLUG-IN HYBRID ELECTRIC VEHICLE TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin The Plug-in Hybrid Electric Vehicle
Task Force is established. The task force consists of 17 members as follows:
new text end

new text begin (1) one representative each from Xcel Energy, Minnesota Power, Great River
Energy, and the Minnesota Municipal Utilities Association;
new text end

new text begin (2) a representative of Minnesota's wind power industry;
new text end

new text begin (3) one representative each from the Minnesota Department of Commerce,
Minnesota Department of Transportation, Minnesota Pollution Control Agency, and
Minnesota Public Utilities Commission;
new text end

new text begin (4) the director of the Travel Management Division of the Minnesota Department of
Administration, or the director's designee;
new text end

new text begin (5) a representative from the University of Minnesota Department of Electrical
Engineering;
new text end

new text begin (6) a representative from Minnesota State University - Mankato's Automotive
Engineering Program;
new text end

new text begin (7) one representative each from Minnesota-based manufacturers of electric
batteries, automotive parts, and power-electronics; and
new text end

new text begin (8) two representatives from environmental advocacy organizations that have been
active in electricity issues.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy shall jointly appoint the task
force members.
new text end

new text begin Subd. 3. new text end

new text begin Co-chairs. new text end

new text begin The task force shall have two co-chairs, one appointed by each
of the appointing authorities established in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Charge. new text end

new text begin (a) The Plug-in Hybrid Electric Vehicle Task Force shall identify
barriers to the adoption of plug-in hybrid electric vehicles (PHEV's) by state agencies,
small and large private fleets, and Minnesota drivers at large and develop strategies to be
implemented over a one-, three-, and five-year time frame to overcome those barriers.
new text end

new text begin (b) The task force shall prepare requests for bids for the state and political
subdivisions of the state to purchase at least 500 PHEV's by July 1, 2008, and at least 5,000
PHEV's annually from 2009 through 2013. The bids must state that they become effective
only if the specified performance specifications and target price per vehicle are met.
new text end

new text begin (c) The task force shall consider and evaluate the data and information presented to
it under subdivision 5 in presenting its findings and recommendations.
new text end

new text begin Subd. 5. new text end

new text begin Data and analysis. new text end

new text begin (a) The commissioner of administration shall analyze
and report to the task force the economic impacts of purchasing a sufficient number of
PHEV's to comprise ten percent, 25 percent, and 50 percent of the state-owned vehicle
fleet. The analysis must compare initial purchase and life-cycle costs of PHEV's and
current fleet vehicles under several scenarios based on alternative projections of future
gasoline prices and prices at which utilities may purchase electricity from PHEV's and
charge PHEV's to recharge.
new text end

new text begin (b) The commissioner of pollution control shall analyze and report to the task force
the environmental impacts of purchasing PHEV's for the state-owned vehicle fleet and at
penetration rates of ten percent, 25 percent, and 50 percent of all motor vehicles registered
in this state. The analysis must compare, for PHEV's and current fleet vehicles, air
emissions of sulfur dioxide, nitrogen oxides, particulate matter less than 2.5 microns in
width, volatile organic compounds, and carbon dioxide.
new text end

new text begin Subd. 6. new text end

new text begin Expenses. new text end

new text begin Members of the task force are entitled to reimbursement for
expenses under Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 7. new text end

new text begin Staff. new text end

new text begin The state agencies represented on the commission shall provide
staff support.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin The task force shall present its findings and recommendations in a
report to the chairs of the senate and house of representatives committees with primary
jurisdiction over energy policy and state government operations by April 1, 2007.
new text end

Sec. 4. new text begin NOTICE OF STATE PROCUREMENT POLICY IN BID DOCUMENTS.
new text end

new text begin All solicitation documents for the purchase of motor vehicles issued by the
Department of Administration after June 30, 2006, must contain the following language:
"It is the intention of the state of Minnesota to begin purchasing plug-in hybrid
electric vehicles (PHEV's) as soon as they become commercially available, meet the
state's performance specifications, and are priced up to ten percent above the price for
comparable gasoline-powered vehicles. It is the intention of the state to purchase at least
500 PHEV's within one year after these conditions have been met, and to purchase at least
5,000 PHEV's annually for at least five years beginning two years after these conditions
have been met."
new text end

Sec. 5. new text begin PLUG-IN ELECTRIC VEHICLE RETROFIT GRANT.
new text end

new text begin $100,000 is appropriated from the general fund to the commissioner of commerce
for a grant to the Automotive Engineering Program at Minnesota State University ??a??a??
Mankato for the purpose of retrofitting two flexible-fuel vehicles to enable them to also
operate as plug-in hybrid electric vehicles.
new text end

Sec. 6. new text begin FORD PLANT ENHANCEMENT COMMISSION.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Establishment; members. new text end

new text begin The Ford Plant Enhancement
Commission is established. The commission shall consist of no more than 25 members
as follows:
new text end

new text begin (1) the commissioner of employment and economic development;
new text end

new text begin (2) the director of planning and economic development for the city of St. Paul;
new text end

new text begin (3) a representative from the collective bargaining unit representing production
workers at the Ford Company plant in St. Paul;
new text end

new text begin (4) a representative from Xcel Energy; and
new text end

new text begin (5) representatives from Minnesota-based suppliers of materials, equipment, and
services to the motor vehicle industry, including, but not limited to, motor vehicle parts
manufacturers, manufacturers of electrical equipment and electric batteries, ethanol
producers, and bankers.
new text end

new text begin The Department of Employment and Economic Development is the lead agency in this
effort.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy and economic development
policy shall jointly appoint the commission members.
new text end

new text begin Subd. 3. new text end

new text begin Co-chairs. new text end

new text begin The commission shall have two co-chairs, one appointed by the
senate appointing authorities established in subdivision 2 and one appointed by the house
of representatives appointing authorities established in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Charge. new text end

new text begin The commission shall develop a package of financial and other
incentives to induce a manufacturer to utilize the Ford Company plant in St. Paul to
produce PHEV's.
new text end

new text begin Subd. 5. new text end

new text begin Expenses. new text end

new text begin Members of the commission are entitled to reimbursement for
expenses under Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Staff. new text end

new text begin The state agencies represented on the commission shall provide
staff support.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin The commission shall present the package of incentives developed
under subdivision 4 in a report to the senate and house of representatives committees with
primary jurisdiction over energy policy and economic development policy by November
15, 2006.
new text end

Sec. 7. new text begin PUBLIC UTILITIES COMMISSION PROCEEDING.
new text end

new text begin Subdivision 1. new text end

new text begin Proceeding. new text end

new text begin The Minnesota Public Utilities Commission shall open
a proceeding to investigate how utilities can best develop the infrastructure to connect
plug-in hybrid electric vehicles (PHEV's) to the electrical grid and to allow utilities to
purchase electricity from PHEV's.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin As used in this section and section 8, "plug-in hybrid electric
vehicle (PHEV)" means a vehicle containing an internal combustion engine that also
allows power to be delivered to the drive wheels by a battery-powered electric motor, and
that meets applicable federal motor vehicle safety standards. When connected to the
electrical grid via a two-way electrical outlet, the vehicle must be able to recharge its
battery and to transfer electricity to a utility. The vehicle must have the ability to travel at
least 20 miles powered substantially by electricity.
new text end

new text begin new text end

Sec. 8. new text begin INDEPENDENT STUDY ON PHEV AND UTILITY ECONOMICS.
new text end

new text begin The Public Utilities Commission shall order the utility subject to Minnesota Statutes,
section 216B.1691, subdivision 6, to contract with a firm selected by the commissioner of
commerce for an independent study of (1) the economics of using electricity purchased
from plug-in hybrid electric vehicles (PHEV's) to provide to the utility peak power
services and ancillary services, including regulation and spinning reserves, and (2) how
such purchases may impact the reserve needs for wind-generated electricity purchased by
the utility. The study must examine the economic impacts on PHEV owners and utilities
of different prices for electricity purchased from PHEV's and rates for recharging PHEV's,
including time-of-day pricing and substantial discounts for off-peak charging. The study
must be completed by April 1, 2007, and submitted in a report to the chairs of the senate
and house of representatives committees with primary jurisdiction over energy policy. The
costs of the study are recoverable under Minnesota Statutes, section 216B.1645.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective the day following final enactment.
new text end