SF 1507

as introduced - 90th Legislature (2017 - 2018) Posted on 02/28/2017 09:36am

A bill for an act
relating to motor vehicles; providing rebates for propane vehicles and fueling
stations; establishing a rebate program with the Department of Commerce;
appropriating money.

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

Section 1. new text begin PROPANE VEHICLE AND FUELING STATION REBATE PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of commerce, in collaboration
with a nonprofit entity with grant administration experience, must administer and provide
the rebates under this section.
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new text begin (b) No later than October 1, 2017, the Department of Commerce must implement written
policies and procedures, and make the required rebate forms available, to exercise the
authority under this section. The policies and procedures must include a mechanism for an
applicant to receive provisional approval of a rebate for a period of time deemed appropriate
by the commissioner.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
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new text begin (b) "Propane vehicle" means a motor vehicle capable of using propane as a motor fuel,
including a bi-fuel or dual fuel vehicle capable of using gasoline or diesel fuel from the
vehicle fueling system.
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new text begin (c) "Incremental cost" means the cost to convert a conventional vehicle, or the difference
between the cost of a propane vehicle and the cost of the same or similar motor vehicle,
manufactured to operate exclusively on gasoline or diesel fuel.
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new text begin (d) "Fueling Station" means a privately owned or retail station at a fixed location intended
for use in fueling propane vehicles.
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new text begin (e) "Light-duty vehicle" means passenger cars and Class 1, 2, and 3 trucks with a gross
vehicle weight rating up to 6,000 pounds.
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new text begin (f) "Medium-duty vehicle" means Class 4, 5, and 6 trucks with a gross vehicle weight
rating of 6,001 pounds to 26,000 pounds.
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new text begin (g) "Heavy-duty vehicle" means Class 7 and 8 trucks with a gross vehicle weight rating
of 26,001 pounds or greater.
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new text begin Subd. 3. new text end

new text begin Rebate eligibility. new text end

new text begin (a) Minnesota residents and business entities, including state
agencies, transit authorities, school districts, cities, or counties, that purchase a propane
vehicle, convert a conventional vehicle to use propane, or purchase and install a fueling
station are eligible for a rebate under this section.
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new text begin (b) Vehicle conversions must be compliant with Natural Fire Protection Association
(NFPA) 52 Vehicular Gaseous Fuel Systems Code standards, and must be installed by a
certified and insured installer.
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new text begin (c) Vehicles must be registered and licensed in Minnesota.
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new text begin (d) Fueling stations must be located in Minnesota.
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new text begin (e) The following expenses are eligible for a rebate:
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new text begin (1) the incremental cost of an original equipment manufacturer propane vehicle purchase;
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new text begin (2) the incremental cost to convert a conventional vehicle to a propane vehicle; and
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new text begin (3) the cost of fueling station equipment, including construction and installation costs.
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new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin Rebates under this section may be issued for:
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new text begin (1) no more than 50 percent of the incremental cost of a light-duty vehicle, not to exceed
$5,000;
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new text begin (2) no more than 50 percent of the incremental cost of a medium-duty vehicle, not to
exceed $8,000;
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new text begin (3) no more than 50 percent of the incremental cost of a heavy-duty vehicle, not to exceed
$20,000;
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new text begin (4) no more than 50 percent of the cost of a fueling station that provides public access,
not to exceed $50,000; and
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new text begin (5) no more than 50 percent of the incremental cost of a designated business fueling
station, not to exceed $10,000.
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new text begin Subd. 5. new text end

new text begin Maximum rebate allowed. new text end

new text begin The maximum number of rebates allowed under
this section are as follows:
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new text begin (1) no more than one rebate per resident household for a passenger car or light-duty
vehicle;
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new text begin (2) no more than $50,000 for light- and medium-duty vehicles per business entity per
year;
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new text begin (3) no more than $100,000 for heavy-duty vehicles per business entity per year; and
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new text begin (4) no more than one fueling station rebate per business entity or designated business
per year.
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new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) $1,500,000 in fiscal year 2018 is appropriated from the
general fund to the commissioner of commerce for the purposes of the rebate program under
this section.
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new text begin (b) The appropriation under paragraph (a) must be expended as follows:
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new text begin (1) $1,000,000 for propane vehicle rebates;
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new text begin (2) $400,000 for propane fueling station rebates; and
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new text begin (3) $100,000 for designated business fueling stations.
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new text begin (c) Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in this
subdivisions is available until expended.
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