SF 674

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:14am

A bill for an act
relating to environment; enacting the Minnesota Clean Car Act; requiring
decreased emission of criteria air pollutants and greenhouse gas pollution from
new motor vehicles; requiring adoption of low emission standards for motor
vehicles; providing for updates as necessary to comply with the federal Clean Air
Act; requiring reports; requiring rulemaking; amending Minnesota Statutes 2008,
section 168A.04, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 116.

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

Section 1.

new text begin [116.393] CITATION.
new text end

new text begin Sections 116.393 to 116.399 may be cited as the "Minnesota Clean Car Act."
new text end

Sec. 2.

new text begin [116.394] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The terms used in sections 116.393 to 116.399 have
the meanings given in this section and California Code of Regulations, title 13, sections
1900 to 2235.
new text end

new text begin Subd. 2. new text end

new text begin CARB. new text end

new text begin "CARB" means the California Air Resources Board.
new text end

new text begin Subd. 3. new text end

new text begin CCR. new text end

new text begin "CCR" means the California Code of Regulations.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of the Pollution
Control Agency.
new text end

new text begin Subd. 5. new text end

new text begin E85. new text end

new text begin "E85" has the meaning given in section 296A.01, subdivision 19.
new text end

new text begin Subd. 6. new text end

new text begin Flexible fuel vehicle. new text end

new text begin "Flexible fuel vehicle" means a vehicle that may
run on fuel other than gasoline.
new text end

new text begin Subd. 7. new text end

new text begin Light-duty truck. new text end

new text begin "Light-duty truck" means any 2013 and subsequent
model year motor vehicle rated at 8,500 pounds gross weight or less, and any other motor
vehicle rated at 6,000 pounds gross vehicle weight or less, which is designed primarily
for purposes of transportation of property.
new text end

new text begin Subd. 8. new text end

new text begin Low-emission vehicle program. new text end

new text begin "Low-emission vehicle program" means
the low-emission vehicle regulations and executive orders adopted by CARB under CCR,
title 13, sections 1900 to 2235.
new text end

new text begin Subd. 9. new text end

new text begin Medium-duty passenger vehicle. new text end

new text begin "Medium-duty passenger vehicle"
means any medium-duty vehicle with a gross vehicle weight rating of less than 10,000
pounds that is designed primarily for the transportation of persons. Medium-duty
passenger vehicle does not include a vehicle that:
new text end

new text begin (1) is an "incomplete truck," that is, a truck that does not have the primary load
carry device or container attached;
new text end

new text begin (2) has a seating capacity of more than 12 persons;
new text end

new text begin (3) is designed for more than nine persons in seating rearward of the driver's seat; or
new text end

new text begin (4) is equipped with an open cargo area of 72.0 inches in interior length or more.
A covered box not readily accessible from the passenger compartment is an open cargo
area for purposes of this definition.
new text end

new text begin Subd. 10. new text end

new text begin Medium-duty vehicle. new text end

new text begin "Medium-duty vehicle" means any 2013 and
subsequent model year vehicle having a manufacturer's gross vehicle weight rating
between 8,501 and 14,000 pounds.
new text end

new text begin Subd. 11. new text end

new text begin Motor vehicle. new text end

new text begin "Motor vehicle" means a passenger car, light-duty truck,
medium-duty passenger vehicle, or medium-duty vehicle. Motor vehicle does not include
a motorcycle, snowmobile, all-terrain vehicle, boat, aircraft, tractor, or farm machinery.
new text end

new text begin Subd. 12. new text end

new text begin New. new text end

new text begin "New" means a motor vehicle with a model year of 2013 or later and
that is in the possession of a manufacturer, distributor, or wholesaler, or has been sold only
to the holders of a valid sales and service agreement, franchise, or contract, granted by the
manufacturer, distributor, or wholesaler for the sale of the motor vehicle and which is in
fact new and on which the original title has not been issued from the franchised dealer.
new text end

new text begin Subd. 13. new text end

new text begin Passenger car. new text end

new text begin "Passenger car" means any motor vehicle designed
primarily for transportation of persons and having a design capacity of 12 persons or less.
new text end

Sec. 3.

new text begin [116.395] APPLICABILITY.
new text end

new text begin Sections 116.393 to 116.399 apply to all new motor vehicles sold, leased, offered
for sale or lease, imported, delivered, purchased, rented, acquired, received, titled, or
registered in the state starting with the 2013 model year and each model year thereafter.
new text end

Sec. 4.

new text begin [116.396] EXEMPTIONS.
new text end

new text begin (a) The following motor vehicles are exempt from sections 116.393 to 116.399:
new text end

new text begin (1) a motor vehicle that is registered under section 168.10;
new text end

new text begin (2) a commercial motor vehicle, as defined in section 169.011, subdivision 16;
new text end

new text begin (3) an authorized emergency vehicle, as defined in section 169.011, subdivision 3;
new text end

new text begin (4) a motor vehicle transferred by a dealer to another dealer for ultimate sale outside
of the state;
new text end

new text begin (5) a motor vehicle transferred for use exclusively off-highway;
new text end

new text begin (6) a motor vehicle transferred for registration out-of-state;
new text end

new text begin (7) a motor vehicle granted a national security or testing exemption under section
203(b)(1) of the Clean Air Act, United States Code, title 42, section 7522(b)(1);
new text end

new text begin (8) a motor vehicle held for daily lease or rental to the general public that is
registered and principally operated outside of the state. For purposes of this clause, a
motor vehicle is deemed to be principally operated outside of the state if it is registered
outside of the state in accordance with the interjurisdictional agreement on apportioning
vehicle registration fees developed under the Intermodal Surface Transportation and
Efficiency Act of 1991, Public Law 102-240, Statutes at Large, volume 105, page 1914,
and known as the International Registration Plan, or a successor plan for apportioning
vehicle registration fees internationally;
new text end

new text begin (9) a motor vehicle engaged in interstate commerce that is registered and principally
operated outside of the state;
new text end

new text begin (10) a motor vehicle acquired by a resident of the state for the purpose of replacing
a vehicle registered to the resident that was damaged, or became inoperative, beyond
reasonable repair or was stolen while out of state if the replacement vehicle is acquired
out of state at the time the previously owned vehicle was either damaged or became
inoperative or was stolen;
new text end

new text begin (11) a motor vehicle transferred by inheritance or court decree;
new text end

new text begin (12) a motor vehicle defined as a military tactical vehicle or engines used in military
tactical vehicles including a vehicle or engine excluded from regulation under Code of
Federal Regulations, title 40, section 85.1703, relating to section 216(2) of the Clean
Air Act;
new text end

new text begin (13) a motor vehicle titled or registered in the state before model year 2013;
new text end

new text begin (14) a motor vehicle having a certificate of conformity issued under the Clean Air
Act and originally registered in another state by a resident of that state who subsequently
establishes residence in this state and upon registration of the vehicle provides satisfactory
evidence to the Department of Public Safety of the previous residence and registration;
new text end

new text begin (15) a motor vehicle transferred for the purpose of salvage; and
new text end

new text begin (16) a motor vehicle sold from one licensed dealer to another licensed dealer.
new text end

new text begin (b) To title or register an exempt motor vehicle, the person seeking title or
registration shall provide satisfactory evidence, as determined by the Department of Public
Safety, demonstrating that the exemption is applicable.
new text end

Sec. 5.

new text begin [116.397] ADMINISTRATION; POLLUTION CONTROL AGENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Rules. new text end

new text begin (a) The Pollution Control Agency, in accordance with federal
Clean Air Act requirements, shall adopt rules, as authorized under the federal Clean Air
Act, United States Code, title 42, section 7507, to regulate emissions from new motor
vehicles sold in the state. The rules:
new text end

new text begin (1) must be adopted under section 14.388, subdivision 1, clause (3);
new text end

new text begin (2) except as provided in clause (3), must incorporate by reference the low emission
vehicle regulations adopted by CARB under CCR, title 13, sections 1900 to 2235;
new text end

new text begin (3) must not include the 15-year or 150,000-mile extended warranty specified in
CCR, title 13, section 1962, for partial zero emission vehicles, provided that partial zero
emission vehicles delivered for sale to Minnesota are equipped with the same quality
components as partial zero emission vehicles supplied to areas where the full 15-year or
150,000-mile warranty remains in effect. This section does not amend the requirements of
CCR, title 13, section 1962, that indicate the warranty period for a zero emission energy
storage device used for traction power will be ten years;
new text end

new text begin (4) must not include any fuel standards set forth in CCR, section 2250, et seq.;
new text end

new text begin (5) must not require a reduction in vehicle weight, a reduction in the speed limit
allowed on any street or highway in the state, a reduction in the amount of vehicle miles
traveled, or a limitation or reduction of any vehicle category in the state, specifically
including but not limited to sport-utility vehicles and light-duty trucks; and
new text end

new text begin (6) must be amended as necessary in a timely fashion to minimize the time during
which Minnesota's rules are not consistent with the low-emission vehicle program, as
required under United States Code, title 42, section 7507. Amendments under this clause
must be made under section 14.388, subdivision 1, clause (3). Prior to considering
adoption of an amendment under this clause, the commissioner must notify the governor,
the commissioners of agriculture and commerce, the chairs and ranking minority members
of the senate and house of representatives committees with primary jurisdiction over
agriculture policy, agriculture finance, commerce policy, commerce finance, environment
policy, and environment finance of the commissioner's intention to adopt an amendment
under this clause.
new text end

new text begin (b) The emission standards adopted under this section may not be extended to
off-road vehicles or engines including, but not limited to, off-highway vehicles as defined
in section 84.771, snowmobiles, boats, aircraft, lawn mowers, tractors, or farm machinery.
new text end

new text begin (c) Any portion of the low-emission vehicle program requiring a federal waiver
under the Clean Air Act to become effective may not be enforced in Minnesota unless and
until the requisite federal waiver is issued.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin Beginning January 1, 2010, and each year thereafter, the
commissioner must submit to the governor, the commissioners of agriculture and
commerce, the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over agriculture policy, agriculture
finance, commerce policy, commerce finance, environment policy, and environment
finance a report of:
new text end

new text begin (1) the information submitted by manufacturers under section 116.399; and
new text end

new text begin (2) to the extent the information is available, for each of the 50 states:
new text end

new text begin (i) the number of E85 pumps operating in each state;
new text end

new text begin (ii) gross sales of E85 in each state; and
new text end

new text begin (iii) the market share of E85 as a proportion of total fuel purchased in each state for
motor vehicle use.
new text end

new text begin Subd. 3. new text end

new text begin Comment submission. new text end

new text begin The commissioner shall submit comments to
CARB on proposed or final-form rulemakings amending the low-emission vehicle
program.
new text end

Sec. 6.

new text begin [116.398] IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Clean air requirement. new text end

new text begin Starting with the model year 2013, a person
may not sell, import, deliver, purchase, lease, rent, acquire, receive, title, or register a new
motor vehicle subject to the Minnesota Clean Car Act in this state that does not comply
with the low-emission vehicle program.
new text end

new text begin Subd. 2. new text end

new text begin Compliance with fleetwide average requirements. new text end

new text begin Starting with the
model year 2013, compliance with the fleetwide average requirements in the low-emission
vehicle program shall be demonstrated for each motor vehicle manufacturer based on the
number of new motor vehicles delivered for sale in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Credits and debits. new text end

new text begin Credits and debits for calculating the pollutants
regulated on a fleet average basis shall be based on the number of new motor vehicles
delivered for sale in Minnesota and may be accrued and utilized by each manufacturer
according to procedures in the low-emission vehicle program.
new text end

new text begin Subd. 4. new text end

new text begin State-specific data. new text end

new text begin In determining a manufacturer's compliance
with the fleetwide emissions standards for all pollutants regulated on a fleetwide
basis, the commissioner shall review only Minnesota-specific sales information and
Minnesota-specific E85 utilization rates.
new text end

Sec. 7.

new text begin [116.399] MANUFACTURER RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Flexible fuel vehicle report. new text end

new text begin Manufacturers shall provide annually
to the commissioner a list of the models of flexible fuel vehicles they offer for sale in
Minnesota, which of the flexible fuel vehicles they offer for sale that are engineered
for optimal performance when running on E85, which of the models are simply E85
compatible, and what percent of the total number of vehicles offered for sale in Minnesota
are flexible fuel vehicles.
new text end

new text begin Subd. 2. new text end

new text begin Domestic supply report. new text end

new text begin Manufacturers shall provide annually to the
commissioner a report indicating what percentage of steel used in motor vehicles delivered
for sale in Minnesota was produced in the United States. Manufacturers shall provide
annually to the commissioner a report indicating what percentage of motor vehicles
delivered for sale in Minnesota were manufactured in the United States.
new text end

new text begin Subd. 3. new text end

new text begin Deliveries report. new text end

new text begin For the purposes of determining compliance with the
Minnesota Clean Car Act, commencing with the 2013 model year, each manufacturer
shall submit annually to the commissioner, within 60 days of the end of each model year,
a report documenting the total deliveries for sale of motor vehicles in each test group
during that model year in the state.
new text end

new text begin Subd. 4. new text end

new text begin Fleet average emissions report. new text end

new text begin For purposes of determining compliance
with the Minnesota Clean Car Act, each motor vehicle manufacturer shall submit annually
to the commissioner by March 1 of the calendar year following the close of the completed
model year, a report of the fleet average emissions of its total deliveries for sale of motor
vehicles in each test group for Minnesota for that particular model year for each pollutant
regulated on a fleetwide basis. The fleet average report, calculating compliance with the
fleetwide exhaust emission averages, shall be prepared according to the procedures in the
low-emission vehicle program.
new text end

new text begin Subd. 5. new text end

new text begin Fleet average report content. new text end

new text begin Fleet average reports must, at a minimum,
identify the total number of vehicles, including offset vehicles, sold in each test group
delivered for sale in Minnesota, the specific vehicle models comprising the sales in
Minnesota and the corresponding certification standards, and the percentage of each model
sold in Minnesota in relation to total fleet sales.
new text end

Sec. 8.

Minnesota Statutes 2008, section 168A.04, subdivision 1, is amended to read:

Subdivision 1.

Contents.

The application for the first certificate of title of a vehicle
in this state shall be made by the owner to the department on the form prescribed by
the department and shall contain:

(1) the first, middle, and last names, the dates of birth, and addresses of all owners
who are natural persons, the full names and addresses of all other owners;

(2) a description of the vehicle including, so far as the following data exists, its
make, model, year, identifying number, type of body, and whether new or used;

(3) the date of purchase by applicant, the name and address of the person from whom
the vehicle was acquired, the names and addresses of any secured parties in the order of
their priority, and the dates of their respective security agreements;

(4) with respect to motor vehicles subject to the provisions of section 325E.15, the
true cumulative mileage registered on the odometer or that the actual mileage is unknown
if the odometer reading is known by the owner to be different from the true mileage;

(5) with respect to vehicles subject to section 325F.6641, whether the vehicle
sustained damage by collision or other occurrence which exceeded 70 percent of the
actual cash value; deleted text begin and deleted text end

(6) new text begin if required under section 116.396, paragraph (b), satisfactory evidence of an
applicable exemption from sections 116.393 to 116.399; and
new text end

new text begin (7) new text end any further information the department reasonably requires to identify the vehicle
and to enable it to determine whether the owner is entitled to a certificate of title, and the
existence or nonexistence and priority of any security interest in the vehicle.

Sec. 9. new text begin RULE ADOPTION.
new text end

new text begin The rules required under Minnesota Statutes, section 116.397, subdivision 1, must be
adopted and made effective by September 30, 2009, and are effective for motor vehicles
with a model year of 2013 and later.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective the day following final enactment.
new text end