SF 2913

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; creating a prepurchase delivered fuel program; proposing
coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

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

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Created. new text end

new text begin The department shall operate, or contract to operate, an
annual prepurchase delivered fuel program.
new text end

new text begin By September 1 of each year, the department must, if it has sufficient funds available
for that purpose, purchase at least one-third of the liquid propane fuel consumed by
low-income home energy assistance program recipients during the previous heating
season. The department shall enter into agreements with vendors who offer summer
prepurchase discount programs, and attempt to negotiate price discounts, including
discounts for prompt payments. The prepurchase delivered fuel program must be available
statewide through each local agency that administers the energy assistance program.
new text end

new text begin Subd. 2. new text end

new text begin Hedge account. new text end

new text begin The department 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 Fuel oil. new text end

new text begin Any funds allocated for prepurchase remaining after the
prepurchase of propane must be used to negotiate summer fills for energy assistance
program customers heating with fuel oil.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The department shall issue an annual report, made available
electronically on its Web site and in print upon request, which contains the following
information:
new text end

new text begin (1) the cost per gallon of the prepurchased fuel;
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new text begin (2) the total gallons of fuel prepurchased;
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new text begin (3) the average cost of propane and fuel oil by 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
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new text begin (5) the average savings accruing or benefit increase provided to energy assistance
households.
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