SF 1516

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/17/2015 08:46am

A bill for an act
relating to motor vehicles; providing rebates for natural gas vehicles and fueling
stations; establishing a rebate program with the Department of Commerce;
appropriating money.

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

Section 1. new text begin NATURAL GAS VEHICLE AND FUELING STATION REBATE
PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of commerce, in collaboration
with a nonprofit entity with grant administration experience, shall administer and provide
the rebates under this section.
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new text begin (b) No later than October 1, 2015, the Department of Commerce shall implement
written policies and procedures, and have the required rebate forms available, to exercise
the authority under this section. The policies and procedures must include a mechanism
for an applicant to receive provisional approval of a rebate for a period of time deemed
appropriate by the commissioner.
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new text begin Subd. 2. 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.
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new text begin (b) "Natural gas vehicle" means a motor vehicle capable of using compressed natural
gas or liquefied natural gas as a motor fuel, including a bi-fuel or dual fuel vehicle capable
of using gasoline or diesel fuel from the vehicle fueling system.
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new text begin (c) "Incremental cost" means the cost to convert a conventional vehicle, or the
difference between the cost of a natural gas vehicle and the cost of the same or similar
motor vehicle, manufactured to operate exclusively on gasoline or diesel fuel.
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new text begin (d) "Fueling Station" means a governmental unit fleet service or retail station at a
fixed location intended for use in fueling natural gas vehicles.
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new text begin (e) "Light-duty vehicle" means passenger cars and Class 1, 2, and 3 trucks with a
gross vehicle weight rating up to 14,000 pounds.
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new text begin (f) "Medium-duty vehicle" means Class 4, 5, and 6 trucks with a gross vehicle
weight rating of 14,001 pounds to 26,000 pounds.
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new text begin (g) "Heavy-duty vehicle" means Class 7 and 8 trucks with a gross vehicle weight
rating of 26,001 pounds or greater.
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new text begin Subd. 3. new text end

new text begin Rebate eligibility. new text end

new text begin (a) Minnesota residents, governmental units, and
business entities, including but not limited to state agencies, transit authorities, school
districts, municipalities, or counties, that purchase a natural gas vehicle, convert a
conventional vehicle to use natural gas, or purchase and install a fueling station are
eligible for a rebate under this section.
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new text begin (b) Vehicle conversions must be compliant with Natural Fire Protection Association
(NFPA) 52 Vehicular Gaseous Fuel Systems Code standards, and must be installed by
a certified and insured installer.
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new text begin (c) Vehicles must be registered and licensed in Minnesota.
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new text begin (d) Fueling stations must be located in Minnesota.
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new text begin (e) The following expenses are eligible for a rebate:
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new text begin (1) the incremental cost of an original equipment manufacturer (OEM) natural gas
vehicle purchased;
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new text begin (2) the incremental cost to convert a conventional vehicle to a natural gas vehicle; and
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new text begin (3) the cost of fueling station equipment, including construction and installation costs.
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new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin Rebates under this section may be issued for:
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new text begin (1) no more than 50 percent of the incremental cost of a light-duty vehicle, not
to exceed $5,000;
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new text begin (2) no more than 50 percent of the incremental cost of a medium-duty vehicle, not
to exceed $8,000;
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new text begin (3) no more than 50 percent of the incremental cost of a heavy-duty vehicle, not
to exceed $20,000; and
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new text begin (4) no more than 50 percent of the cost of a fueling station, not to exceed $200,000.
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new text begin Subd. 5. new text end

new text begin Maximum rebate allowed. new text end

new text begin The maximum number of rebates allowed
under this section are as follows:
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new text begin (1) no more than one rebate per resident household for a passenger car or light-duty
vehicle;
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new text begin (2) no more than $50,000 for light- and medium-duty vehicles per business entity or
governmental unit per year;
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new text begin (3) no more than $100,000 for heavy-duty vehicles per business entity or
governmental unit per year; and
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new text begin (4) no more than one fueling station rebate per business entity or governmental
unit per year.
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new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) $5,000,000 in fiscal year 2016 is appropriated from the
general fund to the commissioner of commerce for the purposes of the rebate program
under this section.
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new text begin (b) The appropriation under paragraph (a) shall be expended as follows:
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new text begin (1) $3,000,000 for natural gas vehicle rebates; and
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new text begin (2) $2,000,000 for natural gas fueling station rebates.
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new text begin (c) Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in this
subdivision is available until expended.
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