Minnesota Legislature
SF 1064
as introduced - 89th Legislature (2015 - 2016) Posted on 08/31/2015 03:56pm
Current Version - as introduced
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A bill for an act
relating to energy; modifying the state's option to prepurchase propane and fuel
oil for distribution to low-income customers; appropriating money; amending
Minnesota Statutes 2014, section 216B.0951.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 216B.0951, is amended to read:
216B.0951 deleted text begin PROPANEdeleted text end new text begin DELIVERED FUELSnew text end PREPURCHASE PROGRAM.
Subdivision 1.
Establishment.
new text begin (a) new text end The commissioner of commerce shall operate,
or contract to operate, a deleted text begin propane fueldeleted text end new text begin delivered fuelsnew text end prepurchase deleted text begin fueldeleted text end program. The
commissioner may contract at any time of the year to purchase deleted text begin the lesser of one-third of the
liquid propane fuel consumed bydeleted text end new text begin delivered fuels up to the amount that can be purchased
with 50 percent of the energy assistance provided tonew text end low-income home energy assistance
program recipients deleted text begin duringdeleted text end new text begin who heat with delivered fuels averaged overnew text end the previousnew text begin threenew text end
heating deleted text begin season or the amount that can be purchased with available fundsdeleted text end new text begin seasonsnew text end . The
deleted text begin propane fueldeleted text end new text begin delivered fuelsnew text end prepurchase program must be available statewide through
each local agency that administers the energy assistance program. The commissioner may
decide to limit or not engage in prepurchasing if the commissioner finds that there is a
reasonable likelihood that prepurchasing will not provide fuel-cost savings.
new text begin
(b) Delivered fuels purchased under this section may not be distributed to customers
until August 1 each year.
new text end
new text begin
(c) For the purposes of this section:
new text end
new text begin
(1) "delivered fuels" means propane and heating fuel oil; and
new text end
new text begin
(2) "heating fuel oil" has the meaning given in section 239.761, subdivision 7.
new text end
Subd. 2.
Hedge account.
The commissioner may establish a hedge account with
realized program savings due to prepurchasing. The account must be used to compensate
program recipients an amount up to the difference in cost for fuel provided to the recipient
if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No
more than ten percent of the aggregate prepurchase program savings may be used to
establish the hedge account.
Subd. 3.
Report.
new text begin (a) new text end The department deleted text begin of Commercedeleted text end shall deleted text begin issuedeleted text end new text begin submitnew text end a reportnew text begin
annuallynew text end by June 30deleted text begin , 2008, made available electronically on its Web site and in print
upon request,deleted text end new text begin to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energynew text end that contains the
following information:
(1) the cost per gallon of prepurchased fuel;
(2) the total gallons of fuel prepurchased;
(3) the average cost of deleted text begin propanedeleted text end new text begin delivered fuelsnew text end each month between October and
the following April;
(4) the number of energy assistance program households receiving prepurchased
fuel; and
(5) the average savings accruing or benefit increase provided to energy assistance
households.
new text begin
(b) The department shall post the report on its Web site.
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 APPROPRIATION.
new text end
new text begin
(a) The amount necessary to fulfill the requirements of Minnesota Statutes,
section 216B.0951, subdivision 1, is appropriated annually from the general fund to the
commissioner of commerce for that purpose.
new text end
new text begin
(b) Each year the commissioner shall reserve an amount equal to the amount
appropriated from the general fund in paragraph (a) from the federal funds transferred
to the state under the low-income home energy assistance program, and shall transfer
that amount to the general fund.
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