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SF 4329

as introduced - 91st Legislature (2019 - 2020) Posted on 03/17/2020 12:10pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to transportation; establishing preference for purchase of electric vehicles
for state fleet; providing rebates for electric vehicle purchases; awarding grants to
automobile dealers to defray cost of manufacturer certification allowing electric
vehicle sales; appropriating money; amending Minnesota Statutes 2018, sections
16C.135, subdivision 3; 16C.137, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 216C.

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

Section 1.

Minnesota Statutes 2018, section 16C.135, subdivision 3, is amended to read:


Subd. 3.

Vehicle purchases.

new text begin(a) new text endConsistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the central motor pool or for use by an agency, the
commissioner or the agency shall purchase a motor vehicle deleted text beginthat is capable of being powered
by cleaner fuels, or a motor vehicle powered by electricity or by a combination of electricity
and liquid fuel, if the total life-cycle cost of ownership is less than or comparable to that of
other vehicles and if the vehicle is capable
deleted text endnew text begin according to the following preferences, in order:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner shall only reject a more-preferred vehicle type if:
new text end

new text begin (1) the vehicle type is incapablenew text end of carrying out the purpose for which it is purchasednew text begin;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next lower preference vehicle type
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

Sec. 2.

Minnesota Statutes 2018, section 16C.137, subdivision 1, is amended to read:


Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text beginpurchaseddeleted text end, excluding emergency and law
enforcement vehiclesdeleted text begin:deleted text endnew text begin, are purchased in conformity with the hierarchy of preferences
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
new text end

new text begin (b) "Dealer" means a person, firm, or corporation possessing a new motor vehicle license
under chapter 168 and that:
new text end

new text begin (1) operates under a franchise from a manufacturer of electric motor vehicles;
new text end

new text begin (2) regularly engages in the business of manufacturing, or selling, purchasing, and
generally dealing in new and unused motor vehicles;
new text end

new text begin (3) has an established place of business for the sale, trade, and display of new and unused
motor vehicles; and
new text end

new text begin (4) possesses new and unused motor vehicles for the purposes of sale or trade.
new text end

new text begin (c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
new text end

new text begin (d) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership are intended to be transferred other than the right to use the vehicle for a term
of at least 24 months.
new text end

new text begin (e) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin Subd. 2. new text end

new text begin Eligible vehicle. new text end

new text begin An electric vehicle is eligible for a rebate under this section
if the electric vehicle:
new text end

new text begin (1) has not been previously owned;
new text end

new text begin (2) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state;
new text end

new text begin (3) is returned to a dealer by a purchaser or lessee within two weeks of purchase or
leasing or when a purchaser's or lessee's financing for the electric vehicle has been
disapproved; or
new text end

new text begin (4) is returned to a dealer before the purchaser or lessee takes delivery, even if the electric
vehicle is registered in Minnesota; and
new text end

new text begin (5) has not been modified from the original manufacturer's specifications;
new text end

new text begin (6) has a base manufacturer's suggested retail price not exceeding $42,000;
new text end

new text begin (7) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota; and
new text end

new text begin (8) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale.
new text end

new text begin Subd. 3. new text end

new text begin Eligible purchaser or lessee. new text end

new text begin A person who purchases or leases an eligible
electric vehicle is eligible for a rebate under this section if the purchaser or lessee:
new text end

new text begin (1) is a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph
(a), when the electric vehicle is purchased or leased;
new text end

new text begin (2) is a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (3) is a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (4) is a political subdivision of the state; and
new text end

new text begin (5) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from Minnesota; and
new text end

new text begin (6) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,500 rebate may be issued under this section to an
eligible purchaser for the purchase or lease of an eligible electric vehicle.
new text end

new text begin (b) In addition to the rebate under paragraph (a), a purchaser or lessee whose household
income at the time the eligible electric vehicle is purchased or leased is less than ... percent
of the current federal poverty guidelines established by the Department of Health and Human
Services is eligible for a rebate of $.......
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin The number of rebates allowed under this section is limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) Rebate applications under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner shall develop administrative procedures governing the application
and rebate award process. Applications shall be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
new text end

new text begin (c) The commissioner shall, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
new text end

new text begin (d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on fund availability or other factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2025.
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

Sec. 4.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the Department of
Commerce to award grants to dealers to offset the costs of obtaining the necessary training
for salespersons, employees who repair vehicles, and other employees of the dealer that is
required by manufacturers of electric vehicles in order to certify a dealer to sell electric
vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner shall develop
administrative procedures and processes for reviewing applications and awarding grants
under this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section may only be used:
new text end

new text begin (1) to reimburse a dealer for the reasonable costs of obtaining training and certification
for the dealer's employees from the electric vehicle manufacturer that awarded the franchise
to the dealer; and
new text end

new text begin (2) for reasonable costs of the department to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
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

Sec. 5. new text beginAPPROPRIATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$10,000,000 in fiscal year 2021 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award rebates for the purchase or lease of eligible electric vehicles under Minnesota
Statutes, section 216C.401. Rebates may be awarded under this paragraph only to eligible
purchasers located within the retail electric service area of the public utility that is subject
to Minnesota Statutes, section 116C.779.
new text end

new text begin (b) $10,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of commerce to award rebates for the purchase or lease of eligible electric
vehicles under Minnesota Statutes, section 216C.401. Rebates may be awarded under this
paragraph only to eligible purchasers located outside the retail electric service area of the
public utility that is subject to Minnesota Statutes, section 116C.779.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$2,000,000 in fiscal year 2021 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award grants under Minnesota Statutes, section 216C.402, to automobile dealers seeking
certification from an electric vehicle manufacturer to sell electric vehicles. Rebates may
only be awarded under this paragraph to eligible dealers located within the retail electric
service area of the public utility that is subject to Minnesota Statutes, section 116C.779.
new text end

new text begin (d) $2,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of commerce to award grants under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to sell electric vehicles. Rebates may only be
awarded under this paragraph to eligible dealers located outside the retail electric service
area of the public utility that is subject to Minnesota Statutes, section 116C.779.
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