SF 3513

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; establishing flexible-fuel vehicle targets;
establishing a plug-in hybrid electric vehicle task force; requiring a public
utilities commission proceeding; requiring an independent study; proposing
coding for new law in Minnesota Statutes, chapter 80E.

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

Section 1.

new text begin [80E.35] FLEXIBLE-FUEL VEHICLE TARGETS.
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new text begin new text end

new text begin Subdivision 1. new text end

new text begin Findings. new text end

new text begin The legislature finds that it is in the interest of all
Minnesotans to lessen dependence on oil as an energy source for economic, security,
and environmental reasons. Minnesota leads the nation in the production and use of
ethanol in motor vehicles, but this strategy can be made more effective by increasing the
proportion of vehicles that can use alternative fuels, such as E85. Further, manufacturers
can produce flexible-fuel vehicles at a minimal incremental cost above gasoline-only
vehicles. As a result, the legislature finds that Minnesota would benefit from more choices
of flexible-fuel vehicles.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, "flexible-fuel vehicle" means a
motor vehicle that operates on gasoline and one or more alternative fuels.
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new text begin (b) As used in this section, "alternative fuel" has the meaning given in United States
Code, title 42, section 13211(3).
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new text begin Subd. 3. new text end

new text begin Target. new text end

new text begin (a) The targets in this subdivision apply to manufacturers who
grant a valid sales and service agreement, franchise, or contract to a dealer in this state.
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new text begin (b) The following targets refer to the percentage of a manufacturer's new motor
vehicles offered for sale in this state that are flexible-fuel vehicles:
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new text begin (1) 2008: ten percent;
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new text begin (2) 2009: 15 percent;
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new text begin (3) 2010: 20 percent;
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new text begin (4) 2011: 25 percent; and
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new text begin (5) 2012: 30 percent.
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Sec. 2. new text begin PLUG-IN HYBRID ELECTRIC VEHICLE TASK FORCE.
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new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin The plug-in hybrid electric vehicle
task force is established. The task force shall consist of 13 members as follows:
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new text begin (1) one representative each from Xcel Energy and Great River Energy;
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new text begin (2) one representative each from the Minnesota Department of Commerce, the
Minnesota Department of Transportation, and the Minnesota Pollution Control Agency;
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new text begin (3) the director of the Travel Management Division of the Minnesota Department of
Administration, or the director's designee;
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new text begin (4) a representative from the University of Minnesota Department of Electrical
Engineering;
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new text begin (5) one representative each from Minnesota-based manufacturers of electric
batteries, automotive parts, and power electronics;
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new text begin (6) a representative from an environmental advocacy organization active in
electricity issues;
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new text begin (7) a representative of United Auto Workers Local 879; and
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new text begin (8) a representative of the Ford Motor Company.
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new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the senate and house of representatives
committees with primary jurisdiction over energy policy shall jointly appoint the task
force members.
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new text begin Subd. 3. new text end

new text begin Cochairs. new text end

new text begin The task force shall have two cochairs, one appointed by each
of the appointing authorities established in subdivision 2.
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new text begin Subd. 4. new text end

new text begin Charge. new text end

new text begin (a) The plug-in hybrid electric vehicle task force shall identify
barriers to the adoption of plug-in hybrid electric vehicles by state agencies, small
and large private fleets, and Minnesota drivers at-large and develop strategies to be
implemented over one-, three-, and five-year time frames to overcome those barriers.
Included in the analysis should be possible financial incentives to encourage Ford Motor
Company to produce plug-in hybrid, flexible-fueled vehicles at its St. Paul plant.
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new text begin (b) The task force shall consider and evaluate the data and information presented to
it under subdivision 5 in presenting its findings and recommendations.
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new text begin Subd. 5. new text end

new text begin Data and analysis. new text end

new text begin (a) The commissioner of administration shall analyze
and report to the task force the economic impacts of purchasing a sufficient number of
plug-in hybrid electric vehicles to comprise ten percent, 25 percent, and 50 percent of the
state-owned vehicle fleet. The analysis must compare initial purchase and life-cycle costs
of plug-in hybrid electric vehicles and current fleet vehicles under several scenarios based
on alternative projections of future gasoline prices and prices at which utilities may charge
plug-in hybrid electric vehicles to recharge.
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new text begin (b) The commissioner of the pollution control agency shall analyze and report to
the task force the environmental impacts of purchasing plug-in hybrid electric vehicles
for the state-owned vehicle fleet and at penetration rates of ten percent, 25 percent, and
50 percent of all motor vehicles registered in this state. The analysis must compare,
for plug-in hybrid electric vehicles and current fleet vehicles, air emissions of sulfur
dioxide, nitrogen oxides, particulate matter less than 2.5 microns in width, volatile organic
compounds, and carbon dioxide.
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new text begin Subd. 6. new text end

new text begin Expenses. new text end

new text begin Members of the task force are entitled to reimbursement for
expenses under section 15.059, subdivision 6.
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new text begin Subd. 7. new text end

new text begin Staff. new text end

new text begin The state agencies represented on the commission shall provide
staff support.
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new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin The task force shall present its findings and recommendations in a
report to the chairs of the senate and house of representatives committees with primary
jurisdiction over energy policy and state government operations by April 1, 2007.
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new text begin Subd. 9. new text end

new text begin Definitions. new text end

new text begin As used in this section, "plug-in hybrid electric vehicles"
means a vehicle containing an internal combustion engine that also allows power to
be delivered to the drive wheels by a battery-powered electric motor, and that meets
applicable federal motor vehicle safety standards. When connected to the electrical grid
via an electric outlet, the vehicle must be able to recharge its battery. The vehicle must
have the ability to travel at least 30 miles powered substantially by electricity.
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new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the report
required by subdivision 8.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 3. new text begin PUBLIC UTILITIES COMMISSION PROCEEDING.
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new text begin Subdivision 1. new text end

new text begin Proceeding. new text end

new text begin The public utilities commission shall open a proceeding
to investigate how utilities can best develop the infrastructure to connect plug-in hybrid
electric vehicles to the electrical grid and to allow utilities to purchase electricity from
plug-in hybrid electric vehicles.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin As used in this section and section 4, "plug-in hybrid electric
vehicles" means a vehicle containing an internal combustion engine that also allows
power to be delivered to the drive wheels by a battery-powered electric motor, and that
meets applicable federal motor vehicle safety standards. When connected to the electrical
grid via a two-way electrical outlet, the vehicle must be able to recharge its battery and
to transfer electricity to a utility. The vehicle must have the ability to travel at least 30
miles powered substantially by electricity.
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Sec. 4. new text begin INDEPENDENT STUDY ON PLUG-IN HYBRID ELECTRIC VEHICLE
AND UTILITY ECONOMICS.
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new text begin The Public Utilities Commission shall order the utility subject to Minnesota Statutes,
section 216B.1691, subdivision 6, to contract with a firm selected by the commissioner
of commerce for an independent study of:
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new text begin (1) the economics of using electricity purchased from plug-in hybrid electric
vehicles to provide to the utility peak power services and ancillary services, including
regulation and spinning reserves; and
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new text begin (2) how such purchases may impact the reserve needs for wind-generated electricity
purchased by the utility. The study must examine the economic impacts on plug-in hybrid
electric vehicle owners and utilities of different prices for electricity purchased from
plug-in hybrid electric vehicles and rates for recharging plug-in hybrid electric vehicles,
including time-of-day pricing and substantial discounts for off-peak charging. The study
must be completed by April 1, 2007, and submitted in a report to the chairs of the senate
and house of representatives committees with primary jurisdiction over energy policy. The
costs of the study are recoverable under Minnesota Statutes, section 216B.1645.
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