SF 1296

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/28/2023 02:46pm

A bill for an act
relating to electric vehicles; establishing preference for purchase of electric vehicles
for state fleet; requiring certification of training of motor vehicle dealer employees;
providing rebates for electric vehicle purchases; requiring certain utilities to file
plans with the Public Utilities Commission to promote electric vehicles; awarding
grants to automobile dealers to defray cost of manufacturer certification allowing
electric vehicle sales; appropriating money; amending Minnesota Statutes 2022,
sections 16B.58, by adding a subdivision; 16C.135, subdivision 3; 16C.137,
subdivision 1; 168.27, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 216B; 216C; repealing Minnesota Statutes 2022,
section 16B.24, subdivision 13.

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

Section 1.

Minnesota Statutes 2022, section 16B.58, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Electric vehicle charging. new text end

new text begin A person that charges a privately owned electric
vehicle at a charging station located within the Capitol area, as defined in section 15B.02,
must pay an electric service fee established by the commissioner.
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.

Minnesota Statutes 2022, section 16C.135, subdivision 3, is amended to read:

Subd. 3.

Vehicle purchases.

new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the enterprise fleet or for use by an agency, the commissioner
or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered by cleaner
fuels, or a motor vehicle powered by electricity or by a combination of electricity and liquid
fuel, if the total life-cycle cost of ownership is less than or comparable to that of other
vehicles and if the vehicle is capable deleted text end new text begin the motor vehicle according to the following vehicle
preference order:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner may only reject a vehicle that is higher on the vehicle preference
order if:
new text end

new text begin (1) the vehicle type is incapable new text end of carrying out the purpose for which it is purchased deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next vehicle type on the vehicle preference order.
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.

Minnesota Statutes 2022, section 16C.137, subdivision 1, is amended to read:

Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text begin purchased deleted text end , excluding emergency and law
enforcement vehicles deleted text begin : deleted text end new text begin , are purchased in conformity with the vehicle preference order
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

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.

Minnesota Statutes 2022, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Dealer training; electric vehicles. new text end

new text begin (a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
new text end

new text begin (1) fundamentals of electric vehicles;
new text end

new text begin (2) electric vehicle charging options and costs;
new text end

new text begin (3) publicly available electric vehicle incentives;
new text end

new text begin (4) projected maintenance and fueling costs for electric vehicles;
new text end

new text begin (5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
new text end

new text begin (6) the impacts of Minnesota's cold climate on electric vehicle operation; and
new text end

new text begin (7) best practices to sell electric vehicles.
new text end

new text begin (b) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 5.

new text begin [216B.1615] ELECTRIC VEHICLE DEPLOYMENT 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, the following terms have
the meanings given.
new text end

new text begin (b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end

new text begin (c) "Electric vehicle" means any device or contrivance that transports persons or property
and is capable of being powered by an electric motor drawing current from rechargeable
storage batteries, fuel cells, or other portable sources of electricity. Electric vehicle includes
but is not limited to:
new text end

new text begin (1) an electric vehicle, as defined in section 169.011, subdivision 26a;
new text end

new text begin (2) an electric-assisted bicycle, as defined in section 169.011, subdivision 27;
new text end

new text begin (3) an off-road vehicle, as defined in section 84.797, subdivision 7;
new text end

new text begin (4) a motorboat, as defined in section 86B.005, subdivision 9; or
new text end

new text begin (5) an aircraft, as defined in section 360.013, subdivision 37.
new text end

new text begin (d) "Electric vehicle charging station" means a physical location deploying equipment
that:
new text end

new text begin (1) transfers electricity to an electric vehicle battery;
new text end

new text begin (2) dispenses hydrogen into an electric vehicle powered by a fuel cell;
new text end

new text begin (3) exchanges electric vehicle batteries; or
new text end

new text begin (4) provides other equipment used to charge or fuel electric vehicles.
new text end

new text begin (e) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated machinery, equipment, and infrastructure necessary for a public utility to supply
electricity or hydrogen to an electric vehicle charging station and to support electric vehicle
operation.
new text end

new text begin (f) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (g) "Government entity" means the state, a state agency, or a political subdivision, as
defined in section 13.02, subdivision 11.
new text end

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

new text begin Subd. 2. new text end

new text begin Transportation electrification plan; contents. new text end

new text begin (a) By November 1, 2023, and
periodically as ordered by the commission, a public utility must file a transportation
electrification plan with the commission that is designed to:
new text end

new text begin (1) maximize the overall benefits of electric vehicles and other electrified transportation
while minimizing overall costs; and
new text end

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

new text begin (i) purchase of electric vehicles by the public utility's customers; and
new text end

new text begin (ii) deployment of electric vehicle infrastructure in the public utility's service territory.
new text end

new text begin (b) A transportation electrification plan may include but is not limited to the following
elements:
new text end

new text begin (1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment among individuals, electric vehicle dealers, single-family
and multifamily housing developers and property management companies, building owners
and tenants, vehicle service stations, vehicle fleet owners and managers, and other potential
users of electric vehicles;
new text end

new text begin (2) utility investments to support transportation electrification across all customer classes,
including but not limited to investments to facilitate:
new text end

new text begin (i) the deployment of electric vehicles for personal and commercial use; customer-owned,
third-party-owned, and utility-owned electric vehicle charging stations; electric vehicle
infrastructure to support light-duty, medium-duty, and heavy-duty vehicle electrification;
and other electric utility infrastructure needed to support transportation electrification;
new text end

new text begin (ii) widespread access to publicly available electric vehicle charging stations; and
new text end

new text begin (iii) the electrification of public transit and vehicle fleets owned or operated by a
government entity;
new text end

new text begin (3) research and demonstration projects to increase access to electricity as a transportation
fuel, minimize the system costs of electric transportation, and inform future transportation
electrification plans;
new text end

new text begin (4) rate structures or programs that encourage electric vehicle charging that optimizes
electric grid operation, including time-varying rates and charging optimization programs;
new text end

new text begin (5) programs to increase access to the benefits of electricity as a transportation fuel for
low- or moderate-income customers and communities and in neighborhoods most affected
by transportation-related air emissions;
new text end

new text begin (6) proposals to expedite commission consideration of program adjustments requested
during the term of an approved transportation electrification plan; and
new text end

new text begin (7) proposals to share information and results from transportation electrification projects
with stakeholders to promote effective electrification in all areas of the state.
new text end

new text begin Subd. 3. new text end

new text begin Transportation electrification plan; review and implementation. new text end

new text begin The
commission may approve, modify, or reject a transportation electrification plan. When
reviewing a transportation electrification plan, the commission must consider whether the
programs, investments, and expenditures as a whole are reasonable and in the public interest,
and are reasonably expected to:
new text end

new text begin (1) improve the operation of the electric grid;
new text end

new text begin (2) increase access to the use of electricity as a transportation fuel for all customers,
including those in low- or moderate-income communities, rural communities, and
communities most affected by emissions from the transportation sector;
new text end

new text begin (3) increase access to publicly available electric vehicle charging and destination charging
for all types of electric vehicles;
new text end

new text begin (4) support the electrification of medium-duty and heavy-duty vehicles and associated
charging infrastructure;
new text end

new text begin (5) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
new text end

new text begin (6) stimulate non-utility investment and the creation of skilled jobs;
new text end

new text begin (7) maximize the overall benefits of electric vehicles and other electrified transportation
investments while minimizing overall costs;
new text end

new text begin (8) educate the public about the benefits of electric vehicles and related infrastructure;
new text end

new text begin (9) be transparent and incorporate reasonable public reporting of program activities,
consistent with existing technology and data capabilities, to inform program design and
commission policy with respect to electric vehicles;
new text end

new text begin (10) reasonably balance the benefits of ratepayer funded investments in transportation
electrification against impacts on utility rates; and
new text end

new text begin (11) appropriately balance the participation of public utilities and private enterprise in
the market for transportation electrification and related services.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investments made or
expenses incurred by a public utility to administer and implement a transportation
electrification plan approved under subdivision 3:
new text end

new text begin (1) performance-based incentives or penalties;
new text end

new text begin (2) placing the capital investment in the public utility's rate base and allowing the public
utility to earn a rate of return on the investment at:
new text end

new text begin (i) the public utility's average weighted cost of capital, including the rate of return on
equity, approved by the commission in the public utility's most recent general rate case; or
new text end

new text begin (ii) another rate determined by the commission; or
new text end

new text begin (3) any other recovery mechanism that the commission determines is fair, reasonable,
and supports the objectives of this section.
new text end

new text begin (b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 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

Sec. 6.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
new text end

new text begin (b) "Dealer" means a person, firm, or corporation that:
new text end

new text begin (1) possesses a new motor vehicle license under chapter 168;
new text end

new text begin (2) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
new text end

new text begin (3) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
new text end

new text begin (4) possesses new and unused motor vehicles to sell or trade the motor vehicles.
new text end

new text begin (c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
new text end

new text begin (d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
new text end

new text begin (e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (b).
new text end

new text begin (f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred, other than the right to use the vehicle for a term of at least 24
months.
new text end

new text begin (g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin (h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin Subd. 2. new text end

new text begin Eligible vehicle. new text end

new text begin (a) A new electric vehicle is eligible for a rebate under this
section if the electric vehicle:
new text end

new text begin (1) has a base manufacturer's suggested retail price that does not exceed $60,000;
new text end

new text begin (2) has not been previously owned;
new text end

new text begin (3) has not been modified from the original manufacturer's specifications;
new text end

new text begin (4) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota; and
new text end

new text begin (5) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale.
new text end

new text begin (b) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle had a base manufacturer's suggested retail price that did not exceed
$60,000 when purchased, has previously been owned in Minnesota or another state, and
has not been modified from the original manufacturer's specifications.
new text end

new text begin (c) For purposes of paragraph (a), a vehicle has not been previously owned if it:
new text end

new text begin (1) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state prior to purchase or lease; or
new text end

new text begin (2) is returned to a dealer by a purchaser or lessee:
new text end

new text begin (i) within two weeks of purchase or leasing or when a purchaser's or lessee's financing
for the electric vehicle has been disapproved; or
new text end

new text begin (ii) before the purchaser or lessee takes delivery, even if the electric vehicle is registered
in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Eligible purchaser or lessee. new text end

new text begin A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
new text end

new text begin (1) is one of the following:
new text end

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

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

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

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

new text begin (2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from the state of Minnesota; and
new text end

new text begin (3) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,500 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
new text end

new text begin (c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Health and Human Services is eligible for a rebate of $500
for the purchase or lease of an eligible new electric vehicle and $100 for the purchase or
lease of an eligible used electric vehicle. The rebate under this paragraph is in addition to
the rebate under paragraph (a) or (b), as applicable.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin The number of rebates allowed under this section is limited to:
new text end

new text begin (1) no more than one rebate per resident; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) A rebate application under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

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

new text begin (c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
new text end

new text begin (d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on the availability of money to award rebates or other
factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2027.
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. 7.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the department to
award grants to dealers to offset the costs of obtaining the necessary training and equipment
that is required by electric vehicle manufacturers in order to certify a dealer to sell electric
vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to reimburse:
new text end

new text begin (1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
new text end

new text begin (2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
new text end

new text begin (3) the department for the reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
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. 8. new text begin APPROPRIATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$10,000,000 in fiscal year 2024 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award rebates to purchase or lease eligible electric vehicles under Minnesota Statutes,
section 216C.401. Rebates must be awarded under this paragraph only to eligible purchasers
located within the retail electric service area of the public utility that is subject to Minnesota
Statutes, section 116C.779.
new text end

new text begin (b) $10,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of commerce to award rebates to purchase or lease eligible electric vehicles
under Minnesota Statutes, section 216C.401. Rebates must be awarded under this paragraph
only to eligible purchasers located outside the retail electric service area of the public utility
that is subject to Minnesota Statutes, section 116C.779.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$2,000,000 in fiscal year 2024 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award grants under Minnesota Statutes, section 216C.402, to automobile dealers seeking
certification from an electric vehicle manufacturer to sell electric vehicles. Rebates must
only be awarded under this paragraph to eligible dealers located within the retail electric
service area of the public utility that is subject to Minnesota Statutes, section 116C.779.
new text end

new text begin (d) $2,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of commerce to award grants under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to sell electric vehicles. Rebates must only be
awarded under this paragraph to eligible dealers located outside the retail electric service
area of the public utility that is subject to Minnesota Statutes, section 116C.779.
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. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 16B.24, subdivision 13, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S1296-1

16B.24 GENERAL AUTHORITY.

Subd. 13.

Electric vehicle charging.

The commissioner shall require that a user of a charging station located on the State Capitol complex used to charge a private electric vehicle pay an electric service fee. The commissioner shall set the electric service fee rate to cover the electricity costs for charging an electric vehicle and for the administrative costs associated with providing electric charging stations.