2006 Minnesota Statutes

216C.16 STATE PETROLEUM SET-ASIDE PROGRAM.
    Subdivision 1. Purpose. The purpose of this section is to grant to the commissioner authority
to exercise specific power to deal with shortages of refined petroleum products. Authority granted
shall be exercised for the purpose of minimizing the adverse impacts of shortages and dislocations
upon the citizens and the economy of the state and nation.
    Subd. 2. Establishment. The commissioner shall establish and is responsible for a state
set-aside system for motor gasoline and middle distillates to provide emergency petroleum
requirements and thereby relieve the hardship caused by shortage, supply dislocations, or other
emergencies. The commissioner, for purposes of administration, may exercise all of the powers
granted by this chapter.
    Subd. 3. Definitions. As used in this section:
(a) "Middle distillates" means distillates obtained between kerosene and lubricating oil
fractions in the refining process, including but not limited to, kerosene, number one and number
two heating oil and diesel fuel.
(b) "Motor gasoline" means a liquid mixture of hydrocarbons produced by the distillation of
petroleum and used chiefly as a fuel in internal combustion engines.
(c) "Prime supplier" means the producer or supplier now or hereafter making the first sale of
middle distillates or motor gasoline subject to the state set-aside for consumption within the state.
(d) "State set-aside" means the amount of middle distillates or motor gasoline required to
be made available by a prime supplier for utilization by the commissioner to resolve or mitigate
emergencies or hardships due to shortages of supply.
    Subd. 4. Set-aside required. Every prime supplier shall allocate for sale or exchange
monthly upon order of the commissioner a volume of motor gasoline and middle distillate not
exceeding the monthly set-aside amount. The amount of gasoline subject to monthly set-aside
shall be an amount equal to three percent of the prime supplier's monthly supply estimate. The
amount of middle distillate subject to monthly set-aside shall be an amount equal to four percent
of the prime supplier's monthly supply estimate.
    Subd. 5. Report of estimated volume; program's allocation. Every prime supplier shall
file with the commissioner a monthly report of its estimated volume of gasoline and middle
distillate deliveries. The report shall be in a form prescribed by the commissioner and shall be
submitted by the 25th day of the month preceding the month covered by the report. Each prime
supplier shall allocate monthly for sale or exchange upon order of the commissioner three percent
of estimated motor gasoline supplies and four percent of estimated middle distillate supplies as
shown by the report.
    Subd. 6. Prime supplier obligations. Each prime supplier shall designate a representative to
act for and on behalf of the prime supplier in respect to department state set-aside orders to be
issued to the prime supplier. A prime supplier shall provide the amount of allocated product stated
in the energy state set-aside order.
    Subd. 7. Rules. The commissioner shall adopt rules to govern the administration of the
set-aside system. Rules shall cover matters such as the form and procedure for applications for
set-aside allocations by dealers of bulk purchasers, reports on available gasoline and middle
distillate supplies, orders and procedure for set-aside allocation and distribution and other rules
deemed necessary or desirable in the implementation and administration of the set-aside system,
including monthly reports of anticipated deliveries and actual sales of gasoline, middle distillates,
propane, aviation fuels, and residual oils.
    Subd. 8. Criteria. The commissioner may allocate gasoline and middle distillates from the
set-aside system in accordance with the criteria in section 216C.15 and rules adopted pursuant
thereto. The commissioner may prescribe additional priorities by rule.
History: 1981 c 356 s 136,248; 1982 c 424 s 130; 1982 c 563 s 5,6; 1983 c 289 s 115 subd
1; 1984 c 640 s 32; 1987 c 312 art 1 s 10 subd 1; 1995 c 233 art 2 s 56