SF 2053

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; establishing propane prepurchase program in Department
of Commerce; providing consumer protections to delivered-fuel customers;
proposing coding for new law in Minnesota Statutes, chapters 216B; 325E.

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

Section 1.

new text begin [216B.0951] PROPANE PREPURCHASE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce shall operate, or
contract to operate, a propane fuel prepurchase fuel program. The commissioner may
contract at any time of the year to purchase the lesser of one-third of the liquid propane
fuel consumed by low-income home energy assistance program recipients during the
previous heating season or the amount that can be purchased with available funds. The
propane fuel 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 end

new text begin Subd. 2. new text end

new text begin Hedge account. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The Department of Commerce shall issue a report by June 30,
2008, made available electronically on its Web site and in print upon request, that contains
the following information:
new text end

new text begin (1) the cost per gallon of prepurchased fuel;
new text end

new text begin (2) the total gallons of fuel prepurchased;
new text end

new text begin (3) the average cost of propane each month between October and the following April;
new text end

new text begin (4) the number of energy assistance program households receiving prepurchased
fuel; and
new text end

new text begin (5) the average savings accruing or benefit increase provided to energy assistance
households.
new text end

Sec. 2.

new text begin [325E.027] DELIVERED FUEL DEALER; DISCRIMINATION
PROHIBITION.
new text end

new text begin (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
who has signed a low-income home energy assistance program vendor agreement with the
Department of Commerce may refuse to deliver liquid propane gas or number 1 or number
2 fuel oil to any person located within the dealer's or distributor's normal delivery area
who receives direct grants under the low-income home energy assistance program if:
new text end

new text begin (1) the person has requested delivery;
new text end

new text begin (2) the dealer or distributor has product available;
new text end

new text begin (3) the person requesting delivery is capable of making full payment at the time of
delivery; and
new text end

new text begin (4) the person is not in arrears regarding any previous fuel purchase from that dealer
or distributor.
new text end

new text begin (b) A dealer or distributor making delivery to a person receiving direct grants
under the low-income home energy assistance program may not charge that person any
additional costs or fees that would not be charged to any other customer and must make
available to that person any discount program on the same basis as the dealer or distributor
makes available to any other customer.
new text end