Laws of Minnesota 1993 

                        CHAPTER 254-H.F.No. 1133 
           An act relating to energy; directing the public 
          service department to evaluate and implement a policy 
          to promote the use of motor vehicles powered by 
          alternate fuels; appropriating money; amending 
          Minnesota Statutes 1992, section 216C.01, by adding 
          subdivisions; proposing coding for new law in 
          Minnesota Statutes, chapters 216B; and 216C. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  [216B.168] [ALTERNATIVE FUEL VEHICLES.] 
    Subdivision 1.  [RATE RECOVERY.] If the department 
determines under section 6 that a policy that would result in 
the recovery through public utility rates of expenses or 
investments in the development and market penetration of 
alternative fuel vehicles is in the public interest and 
consistent with the Federal Energy Policy Act, United States 
Code, title 42, section 13235, the department may approve plans 
of public utilities to make investments and expenditures in 
alternative fuel vehicles and supporting equipment.  The 
commission may allow a public utility to recover through its 
rates the investments and expenses under a plan approved by the 
department and may allow recovery of any assessment under 
section 7.  The rate recovery shall provide for the ratable 
phase-out over a 20-year period at five percent per year of the 
recovery of those expenses or investments in public utility 
rates. 
    Subd. 2.  [REPEALER.] This section expires July 1, 2003, 
except that any plan approved by the commission under 
subdivision 1 prior to that date may continue until the 
expiration date of the plan. 
    Sec. 2.  Minnesota Statutes 1992, section 216C.01, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ALTERNATIVE FUEL.] "Alternative fuel" means 
natural gas; liquified petroleum gas; hydrogen; coal-derived 
liquified fuels; electricity; methanol, denatured ethanol, and 
other alcohols; mixtures containing 85 percent or more, or other 
percentage as may be set by regulation by the Secretary of the 
United States Department of Energy, by volume of methanol, 
denatured ethanol, and other alcohols with gasoline or other 
fuels; fuels other than alcohol that are derived from biological 
materials; and other fuel that the Secretary of the United 
States Department of Energy determines by regulation to be an 
alternative fuel within the meaning of section 301(2) of the 
National Energy Policy Act of 1992. 
    Sec. 3.  Minnesota Statutes 1992, section 216C.01, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 
vehicle" means a dedicated or a dual-fuel vehicle. 
    Sec. 4.  Minnesota Statutes 1992, section 216C.01, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [DEDICATED FUEL VEHICLE.] "Dedicated fuel 
vehicle" means a vehicle that operates solely on alternative 
fuels. 
    Sec. 5.  Minnesota Statutes 1992, section 216C.01, is 
amended by adding a subdivision to read: 
    Subd. 4.  [DUAL-FUEL VEHICLE.] "Dual-fuel vehicle" means a 
vehicle that is capable of operating on an alternative fuel and 
is capable of operating on gasoline or diesel fuel. 
    Sec. 6.  [216C.40] [ALTERNATIVE FUEL VEHICLES.] 
    Subdivision 1.  [STATE POLICY.] It is in the long-term 
economic, environmental, and social interest of the state of 
Minnesota to promote the development and market penetration of 
alternative fuel vehicles that reduce harmful emissions from 
motor vehicles as defined in United States Code, title 42, 
section 7550(2), so as to assist in attaining and maintaining 
healthful air quality, to provide fuel security through a 
diversity of alternative fuel supply sources, and to develop 
additional markets for indigenous crop-based fuels. 
    Subd. 2.  [STATE PLAN.] The policies developed and 
implemented under this section are intended to form part of the 
state plan that may be submitted by the governor to the 
Secretary of the United States Department of Energy under 
section 409 of the National Energy Policy Act of 1992.  In 
developing the policies and the state plan, the department shall 
hold public hearings, at least one of which must be held outside 
the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
and Washington. 
    Subd. 3.  [REPORT TO THE LEGISLATURE.] The department 
shall, after consultation with the public utilities commission, 
the environmental quality board, the pollution control agency, 
the department of transportation, the department of 
administration, the department of agriculture, and the 
department of trade and economic development, submit a report to 
the legislature by January 1, 1994, detailing the department's 
progress and all actions taken by units of state government to 
implement the policies set forth in subdivision 1 concerning 
alternative fuels. 
    Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
department under this section are conditional on the 
commissioner of public service finding that there will be at 
least one public utility that will be subject to the assessment 
created by section 7. 
    Subd. 5.  [REPEALER.] This section expires July 1, 2003. 
    Sec. 7.  [ASSESSMENT; APPROPRIATION.] 
    The department of public service shall assess no more than 
$78,000 in fiscal year 1994 against public utilities that have 
plans submitted under section 1, subdivision 1, for expenses 
reasonably attributable to the performance of the department's 
duties in developing the state plan under section 6, subdivision 
2.  A public utility that so elects shall notify the department 
of public service by June 1, 1993, in writing, of their 
agreement to be assessed under this section.  A utility is bound 
by an election to be assessed.  The assessment must be paid by 
the public utility within 30 days of its receipt of a bill for 
the assessment.  The assessment for each utility shall be 
equally shared among assessed utilities and is appropriated to 
the department of public service for the purposes of this act. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 1 to 7 are effective the day following final 
enactment. 
    Presented to the governor May 15, 1993 
    Signed by the governor May 19, 1993, 8:34 a.m.