Minnesota Legislature
SF 3189
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/31/2023 08:38am
Current Version - as introduced
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A bill for an act
relating to transportation; establishing a medium- and heavy-duty zero-emission
vehicle grant program; authorizing rulemaking; requiring reports; appropriating
money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin MEDIUM- AND HEAVY-DUTY ZERO-EMISSION VEHICLE PILOT
PROGRAM.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Applicant" means any business that purchases or leases an eligible medium- or
heavy-duty zero-emission vehicle and applies for a grant under the pilot program.
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(c) "Commissioner" means the commissioner of commerce.
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(d) "Environmental justice area" means a census tract or tracts:
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(1) wherein at least 40 percent of people reported income less than 200 percent of the
federal poverty level;
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(2) wherein at least 45 percent of the people identify as people of color in the most recent
data from the United States Census Bureau; or
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(3) located in Indian country, as defined in United States Code, title 18, section 1151.
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(e) "Grant" means either:
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(1) a voucher purchase incentive, which may include point-of-sale discounts offered by
a zero-emission vehicle dealer; or
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(2) reimbursement paid to the applicant for replacement of a diesel vehicle with the
purchase of a zero-emission vehicle eligible under this section.
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(f) "Heavy-duty vehicles" means commercial trucks used to deliver cargo and freight
with a gross vehicle weight rating of greater than 33,000 pounds.
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(g) "Medium-duty vehicles" means commercial trucks used to deliver cargo and freight
with a gross vehicle weight rating between 14,001 and 33,000 pounds.
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(h) "Zero-emission vehicle" means either:
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(1) an all-electric vehicle, as defined by Minnesota Statutes, section 169.011, subdivision
1a; or
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(2) a vehicle that produces no emissions of pollutants, including but not limited to carbon
dioxide, carbon monoxide, hydrocarbons, oxides of nitrogen, and particulates, when
stationary or operating.
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new text begin Subd. 2. new text end
new text begin Authorization. new text end
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The commissioner must establish a pilot program to award
competitive grants to qualifying purchasers of certain medium- and heavy-duty zero-emission
vehicles. The commissioner may work with the commissioner of transportation to develop
the pilot program and determine the qualifying medium- and heavy-duty zero-emission
vehicles. The purpose of the pilot program is to demonstrate real-world fleet applications
of medium- and heavy-duty zero-emission vehicles' operation and performance in Minnesota
across a variety of classifications, weights, geographical location, and uses.
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new text begin Subd. 3. new text end
new text begin Goals. new text end
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The goals of the pilot program are to:
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(1) support the early commercial deployment of existing medium- and heavy-duty zero-
and near-zero-emission truck technology;
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(2) support Minnesota businesses in achieving their voluntary decarbonization goals;
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(3) promote greater commercial shipping and trucking efficiencies and the reduction of
freight and shipping costs;
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(4) test the viability of a statewide, permanent adoption of a grant and voucher program
for medium- and heavy-duty zero- and near-zero-emission truck technology;
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(5) study adoption patterns in greater Minnesota regions such as the Iron Range, northern
Minnesota, and southern Minnesota; and
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(6) promote access to medium- and heavy-duty zero- and near-zero-emission vehicles
in environmental justice areas.
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new text begin Subd. 4. new text end
new text begin Eligibility. new text end
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(a) To receive a grant under this section, applicants must have a
physical business location or be domiciled in Minnesota from which the medium- and
heavy-duty zero-emission vehicles operate. Before the commissioner approves a grant
application, the applicant must provide proof to the commissioner that the applicant's
commercial diesel vehicles are decommissioned and no longer in use. An applicant awarded
grant funds must operate the medium- or heavy-duty zero-emission vehicle for three years
in Minnesota after receiving the funds. Applicants must maintain insurance on any vehicle
awarded grant funds under this section.
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(b) Grants awarded under this section must be awarded as follows:
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(1) ... percent to an agricultural facility delivering goods in intrastate commerce;
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(2) ... percent to businesses owning and operating medium- or heavy-duty diesel vehicles
in environmental justice areas; and
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(3) ... percent to freight or delivery services originating or operating within northern
Minnesota or the Iron Range.
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(c) Awarded grants must replace at least 30 percent of the applicant's medium- and
heavy-duty diesel fleet with medium- and heavy-duty zero-emission vehicles of similar
class and vocation. Successful applicants may use up to $150,000 of the grant to purchase
high-speed charging infrastructure. Applicants must enroll in the reporting program and
utilize the data acquisition system described in paragraph (f).
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(d) The following vehicles are not eligible for grants under this section:
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(1) vehicles previously registered in any other state;
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(2) preowned vehicles; and
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(3) noncommercial vehicles or vehicles for personal use.
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Applicants must not make or allow any modifications to the vehicle's emissions control
system, hardware, software calibration, or hybrid system.
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(e) Eligible vehicles are to be determined by the commissioners of commerce and
transportation. Only vehicles approved by the commissioners are eligible for a grant under
this section. The commissioners must describe the minimum criteria for vehicles to obtain
grant eligibility. The commissioners must publish the list of eligible medium- and heavy-duty
zero-emission vehicles.
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(f) All vehicles eligible for grants under this section must be equipped with a data
acquisition system capable of collecting vehicle global positioning system data and vehicle
mileage.
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(g) Each vehicle manufacturer must provide quarterly reports to the grantee for each
funded vehicle. The quarterly reports must include the hours and percentage of total time
when the vehicle is operated, the total miles traveled, and geographic data on where the
vehicle was operated. Applicants who do not submit reports under subdivision 7 may be
prohibited from future pilot program participation.
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new text begin Subd. 5. new text end
new text begin Grants. new text end
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The commissioner, in consultation with the commissioner of
transportation, must develop an application process for and award onetime state-funded
grants to eligible applicants for purchase of medium- and heavy-duty zero-emission vehicles.
An eligible applicant must meet the requirements set forth in subdivision 4 and submit any
documentation as required by the commissioner. Once an applicant's application is approved,
grant funds are to be used to purchase and order an eligible medium- or heavy-duty
zero-emission vehicle. Funds must be disbursed to the applicant within 21 days of the
commissioner approving the application.
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new text begin Subd. 6. new text end
new text begin Rulemaking. new text end
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The commissioner shall adopt rules to implement the provisions
of this section. For the purposes of this section, the commissioner may use the expedited
rulemaking process under Minnesota Statutes, section 14.389.
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new text begin Subd. 7. new text end
new text begin Report. new text end
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(a) Within six months after the pilot program has concluded, or by
January 1, 2025, whichever is earlier, the commissioners of commerce and transportation
must submit a report on the medium- and heavy-duty zero-emission vehicle pilot program
to the chairs and ranking members of the legislative committees having jurisdiction over
transportation and commerce. At a minimum, the report must analyze the efficacy of the
pilot program and must address the following:
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(1) the total number of grants that were awarded through the pilot program;
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(2) the types of medium- and heavy-duty zero-emission vehicles that were reimbursed
through the pilot program;
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(3) an analysis of whether grant awards under the pilot program met the geographic
requirements set forth in subdivision 4;
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(4) an analysis on the viability of statewide adoption of medium- and heavy-duty
zero-emission vehicles;
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(5) an outline of performance criteria and metrics for deployment incentives and
promotion of investments in medium- and heavy-duty zero- and near-zero-emission trucking
and shipping; and
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(6) recommended legislative changes, if any, to encourage the adoption of and investment
in medium- and heavy-duty zero- and near-zero-emission vehicles and supporting charging
infrastructure.
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(b) By October 1, 2025, the recipients of the pilot program grants under this section
must report to the chairs and ranking minority members of the legislative committees with
jurisdiction over commerce and transportation on the grants issued under this section. The
report must include the telematics data collected under subdivision 4, paragraph (g), and
the manufacturer's quarterly reports. The report must also include but is not limited to the
following:
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(1) geographic information on the areas of Minnesota where the vehicle or charging
equipment was used;
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(2) the total lifetime greenhouse gas emissions reduced by operation of the medium- or
heavy-duty zero-emission vehicle;
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(3) the total miles driven or hours of operation per vehicle per year;
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(4) hours and percentage of the total working hours used in a medium- or heavy-duty
zero-emission vehicle;
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(5) an analysis of the estimated total lifetime greenhouse gas emissions reduced by the
medium- or heavy-duty zero-emission vehicle;
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(6) an analysis of the miles driven or hours of operation per year by the medium- or
heavy-duty zero-emission vehicles; and
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(7) an analysis of the yearly electricity used by medium- or heavy-duty vehicles purchased
under the pilot program.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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$....... in fiscal year 2024 is appropriated from the general fund to the commissioner of
commerce to implement the medium- and heavy-duty zero-emission vehicle grant pilot
program authorized by section 1. The commissioner must award grants to qualified purchasers
of medium- and heavy-duty zero-emission vehicles as provided in section 1, subdivisions
4 and 5. Grants must be awarded on a first-come, first-served basis. This is a onetime
appropriation. Any unencumbered balance in the first year does not cancel but is available
in the second year.
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new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2023, and applies to grants made
on or after that date.
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