Minnesota Laws and Incentives

Listed below are the summaries of all current Minnesota laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (10)
• Utility / Private Incentives (28)
• Laws and Regulations (20)

State Incentives

Minnesota’s National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Minnesota Department of Transportation (MnDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Minnesota’s NEVI planning process, see the MnDOT EV Infrastructure Plan website. To review Minnesota’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Electric Vehicle (EV) Rebate

The Minnesota Department of Commerce offers rebates to residents for the purchase or lease of new or pre-owned all-electric or plug-in hybrid electric vehicles (PHEVs). Eligible EVs may not have a pre-tax purchase price above $55,000 for new vehicles or $25,000 for pre-owned vehicles. Rebates are available in the following amounts:

Eligible applicants may receive a maximum of one rebate. For more information, see the Minnesota Department of Commerce EV Program website.

(Reference Minnesota Session Laws 2023-2024 Chapter 60 and Minnesota Statutes 169.011)

Electric School Bus and Infrastructure Grants

The Minnesota Department of Commerce provides grants to public, private, and charter school districts for the purchase of new electric school buses or repower of existing school buses with electricity. Grant awards may cover up to 95% of vehicle and associated infrastructure costs. Additional conditions may apply.

(Reference Minnesota Session Laws 2023-2024 Chapter 60)

Electric Vehicle (EV) Toll Credit Pilot Program

The Minnesota Department of Transportation (MnDOT) is offering a one-time account credit to eligible EV drivers for use in Minnesota toll lanes. Drivers who purchase or lease a new or used plug-in hybrid electric vehicle may receive a $125 credit, and drivers who purchase or lease a new or used all-electric vehicle may receive a $250 credit. Eligible vehicles must be purchased or leased between November 1, 2019, and October 31, 2025. For more information, see the MnDOT E-ZPass website.

Electric School Bus Grants

The Minnesota Pollution Control Agency (MPCA) provides matching funds for eligible entities that receive grants from the U.S. Environmental Protection Agency’s Clean School Bus program for the replacement of diesel-powered school buses with electric school buses. MPCA provides grants up to $375,000 per eligible project. This program is funded by Minnesota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including eligibility requirements, see the MPCA Volkswagen Settlement Grants website.

Off-Road Diesel Replacement Grants

The Minnesota Pollution Control Agency (MPCA) provides funding to public, private, and nonprofit fleet owners for the replacement of eligible off-road diesel equipment. Eligible equipment includes trailer refrigeration units, terminal tractors/drayage trucks, and more. This program is partially funded by Minnesota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the MPCA Diesel Emission Reduction Act website.

Biofuel Production Grant Program

The Minnesota Department of Agriculture provides grants to biofuel producers for up to $2.1053 per million British Thermal Unit (MMbtu) for advanced biofuel produced from cellulosic biomass and $1.053 per MMbtu for advanced biofuel produced from sugar or starch feedstocks. Eligible facilities must obtain 80% of their feedstocks from Minnesota, unless the facility is 50 miles or less from the state border; begin production by June 30, 2025; and meet minimum production levels. Additional requirements apply. For more information, see the Agricultural Growth, Research and Innovation Bioincentive Program website.

(Reference Minnesota Statutes 41A.16 and 239.051 and House Bill 3240, 2023)

Ethanol Production Facility Environmental Assessment Exemption

An ethanol production facility that produces less than 125 million gallons of ethanol annually and is located outside of the seven-county metropolitan area is exempt from preparing an environmental impact statement. In addition, an environmental assessment worksheet is not required for the expansion of an ethanol or biobutanol production facility or for the conversion of an ethanol facility to produce biobutanol. Exceptions may apply.

(Reference Minnesota Statutes 41A.09 and 116D.04)

Idle Reduction Technology Loan Program

The Minnesota Pollution Control Agency’s Small Business Environmental Assistance Program provides low-interest loans up to $75,000 to qualified small businesses to finance environmental projects such as capital equipment upgrades to meet or exceed environmental regulations, including idle reduction technologies. For more information, including eligibility requirements, see the Low-Interest Environmental Loans website.

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption

A motor vehicle equipped with idle reduction or emissions reduction technology may exceed the maximum gross vehicle weight and axle weight limits by up to 550 pounds (lbs.) to compensate for the additional weight of the technology.

NGVs may exceed the state’s gross vehicle and axle weight limits by the amount of weight calculated as provided under Code of Federal Regulations Title 23, section 127(s), not to exceed 2,000 lbs.

The vehicle operator must be able to provide documentation or demonstrate that the vehicle meets these requirements.

(Reference Minnesota Statutes 169.824)

Utility / Private Incentives

City of Anoka - Minnesota

City of Anoka is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Anoka website.

Residential Incentives

Non-Residential Incentives

City of Buffalo Utilities - Minnesota

City of Buffalo Utilities is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Buffalo Utilities website.

Residential Incentives

Non-Residential Incentives

City of Chaska - Minnesota

City of Chaska is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Chaska website.

Residential Incentives

Non-Residential Incentives

City of Elk River - Minnesota

City of Elk River is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Elk River website.

Residential Incentives

Non-Residential Incentives

City of Kasota - Minnesota

City of Kasota is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Kasota website.

Residential Incentives

Non-Residential Incentives

City of La Sueur - Minnesota

City of La Sueur is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of La Sueur website.

Residential Incentives

Non-Residential Incentives

City of North St. Paul - Minnesota

City of North St. Paul is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of North St. Paul website.

Residential Incentives

Non-Residential Incentives

City of Saint Peter - Minnesota

City of Saint Peter is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Saint Peter website.

Residential Incentives

Non-Residential Incentives

Connexus Energy - Minnesota

Connexus Energy is an investor-owned utility (IOU) that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Connexus Energy website.

Residential Incentives

Non-Residential Incentives

Connexus Energy - Minnesota

Connexus Energy is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Connexus Energy website.

Residential Incentives

Non-Residential Incentives

Dakota Electric Association - Minnesota

Dakota Electric Association is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Dakota Electric Association website.

Residential Incentives

Non-Residential Incentives

Delano Municipal Utilities - Minnesota

Delano Municipal Utilities is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Delano Municipal Utilities website.

Residential Incentives

Non-Residential Incentives

East Central Energy - Minnesota

East Central Energy is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the East Central Energy website.

Residential Incentives

Non-Residential Incentives

Great River Energy - Minnesota

Great River Energy is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Great River Energy website.

Residential Incentives

Non-Residential Incentives

Lake Region Electric Cooperative (LREC) - Minnesota

Lake Region Electric Cooperative (LREC) is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Lake Region Electric Cooperative (LREC) website.

Residential Incentives

Non-Residential Incentives

McLeod Cooperative Power - Minnesota

McLeod Cooperative Power is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the McLeod Cooperative Power website.

Residential Incentives

Non-Residential Incentives

Mille Lacs Energy Cooperative - Minnesota

Mille Lacs Energy Cooperative is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Mille Lacs Energy Cooperative website.

Residential Incentives

Non-Residential Incentives

Minnesota Power - Minnesota

Minnesota Power is an investor-owned utility (IOU) that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Minnesota Power website.

Residential Incentives

Non-Residential Incentives

Minnesota Propane Association - Minnesota

Minnesota Propane Association is utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Minnesota Propane Association website.

Residential Incentives

Non-Residential Incentives

Minnesota Valley Electric Cooperative - Minnesota

Minnesota Valley Electric Cooperative is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Minnesota Valley Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

New Prague Utilities Commission - Minnesota

New Prague Utilities Commission is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the New Prague Utilities Commission website.

Residential Incentives

Non-Residential Incentives

North Branch Water and Light Commission - Minnesota

North Branch Water and Light Commission is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the North Branch Water and Light Commission website.

Residential Incentives

Non-Residential Incentives

Otter Tail Power - Minnesota

Otter Tail Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Otter Tail Power website.

Residential Incentives

Non-Residential Incentives

Princeton Public Utilities - Minnesota

Princeton Public Utilities is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Princeton Public Utilities website.

Residential Incentives

Non-Residential Incentives

Runestone Electric Association - Minnesota

Runestone Electric Association is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Runestone Electric Association website.

Residential Incentives

Non-Residential Incentives

Shakopee Public Utilities - Minnesota

Shakopee Public Utilities is a municipal utility that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Shakopee Public Utilities website.

Residential Incentives

Non-Residential Incentives

Wright-Hennepin Cooperative Electric Association - Minnesota

Wright-Hennepin Cooperative Electric Association is a cooperative that operates in Minnesota. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Wright-Hennepin Cooperative Electric Association website.

Residential Incentives

Non-Residential Incentives

Xcel Energy - Minnesota

Xcel Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Xcel Energy website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Minnesota has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. For more information, see the Clean Cars Minnesota website.

(Reference Minnesota Administrative Rules Chapter 7023.025 and 7023.0300)

Regional Electric Vehicle (REV) Midwest Plan

Minnesota joined Illinois, Indiana, Michigan, and Wisconsin (Signatory States) in signing the REV Midwest memorandum of understanding (MOU) to accelerate vehicle electrification in the Midwest. Signatory States are committed to:

• Accelerate medium- and heavy-duty fleet electrification;
• Collaborate on regional electric vehicle (EV) charger siting and deployment analyses with a focus on commercial routes;
• Standardize regulations, messaging, and customer experience related to EVs across state lines;
• Evaluate opportunities for workforce development;
• Identify historically disadvantaged communities for equitable EV charger development and EV adoption; and,
• Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption.

The Signatory States maintain a coordination group composed of senior leadership from each state who meet and report on the above actions. For more information, see the REV Midwest Partnership Announcement.

All-Electric Vehicle (EV) Fee

EVs are subject to an additional registration fee of $75.

(Reference Minnesota Statutes 168.013)

Public Utility Definition

An individual, corporation, or other legal entity that resells compressed natural gas as a vehicular fuel or electricity to recharge a battery that powers an electric vehicle is not defined as a public utility.

(Reference Minnesota Statutes 216B.02)

Alternative Fuel Tax

The Minnesota Department of Revenue imposes an excise tax on the first licensed distributor that receives E85 fuel products in the state and on distributors, special fuel dealers, or bulk purchasers of other alternative fuels. The Minnesota Department of Revenue Commissioner must determine the tax rate for alternative fuel sales annually. The tax rate for E85 is set by the Minnesota Highway Construction Cost Index. Propane is taxed at a minimum rate of $0.1875 per gallon, liquefied natural gas is taxed at a minimum rate of $0.15 per gallon, and compressed natural gas is taxed at a minimum rate of $1.974 per thousand cubic feet. Exemptions apply for certain categories of fuel purchasers.

(Reference Minnesota Statutes 296A.07 and 296A.08)

Connected and Automated Vehicles (CAVs) Advisory Council and Support

The Governor’s Advisory Council on Connected and Automated Vehicles (Advisory Council) was established to study, assess, and prepare for widespread adoption of CAVs, and provide advice and support to the governor, Minnesota Department of Transportation (MnDOT), and the Department of Public Safety. The Advisory Council must meet at least four times annually to discuss advancements in CAV technologies, evaluate potential partnerships to prepare for the adoption of CAVs, and propose laws and regulations to safely test and implement CAVs.

The Advisory Council published a report in December 2018 that recommended changes to statutes, rules, and policies related to CAVs. Report recommendations included funding pilot projects to ensure that CAV technology is safely implemented, developing laws to adapt to CAVs, prioritizing equitable implementation of CAVs, and conducting public education and outreach on CAVs. The Advisory Council must prepare an annual report for the governor with updates on the activities and actions need to ensure Minnesota is advancing CAVs.

MnDOT and the Department of Public Safety will establish guidelines for development, testing, and deployment of CAV technologies, and will support safe and effective testing and use at every level of autonomy, including driverless technology. MnDOT will form the Interagency CAV Team to implement the tasks outlined above. For more information, see the MnDOT CAVs website.

(Reference Executive Order 19-18, 2019)

Biofuel Incentive Authorization

The Agricultural Growth, Research, and Innovation Program may offer grants, loans, or other financial incentives to alternative fuel retailers for the installation of ethanol blender pumps or other rural economic infrastructure activities, or to producers of transportation fuels from cellulosic material or bio-based products.

(Reference Minnesota Statutes 41A.12)

Biodiesel Blend Mandate

During the months of April through September, diesel fuel sold in the state must contain at least 20% biodiesel (B20). Diesel fuel sold during the remainder of the year must contain at least 5% biodiesel (B5). From April 1 to April 14, diesel fuel sold in the state can be a lower blend than B20, but not less than 10% biodiesel (B10).

The Minnesota Department of Agriculture, Department of Commerce, and the Pollution Control Agency, in consultation with the Biodiesel Task Force and other technical experts, must submit annual reports regarding the implementation of minimum biodiesel content requirements, including information about the price and supply of biodiesel fuel.

(Reference Minnesota Statutes 239.75 and 239.77)

Biodiesel Definition

Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets ASTM Standard D6751-11b for pure biodiesel (B100). A biodiesel blend is a blend of diesel fuel and biodiesel fuel (between 6% and 20%) for on-road and off-road diesel vehicle use. Biodiesel blends must comply with ASTM Standard D7467-10. Biodiesel produced from palm oil is not considered biodiesel fuel unless the palm oil is waste oil or grease collected from within the United States or Canada.

(Reference Minnesota Statutes 239.761 and 239.77)

Biofuel Blend Mandate

All gasoline sold or offered for sale in Minnesota must contain at least: - 10% corn-based ethanol by volume or the maximum percent by volume of corn-based ethanol authorized in a waiver issued by the U.S. Environmental Protection Agency (EPA), whichever is greater; or - 10% other biofuel authorized in an EPA waiver by volume, or a biofuel formulation registered by EPA under Title 42 of the Code of Federal Regulations, section 7545.

Biofuel is defined as renewable fuel with an approved fuel pathway under the Energy Policy Act of 2005, as amended under the Energy Independence and Security Act of 2007.

Any biofuel may be used to meet the standards above, but corn-based ethanol may not comprise less than the following percentages of the total biofuel use in the state by the date specified:

(Reference Minnesota Statutes 239.761 and 239.791)

Minnesota Biofuels Replacement Goals

The Minnesota Department of Weights and Measures promotes the replacement of petroleum used in the state with the goal that biofuels will account for at least the specified percentage of all gasoline offered for sale by the dates below:

(Reference Minnesota Statutes 239.7911)

E85 Definition

E85 is defined as a blend of ethanol and gasoline that contains no more than 85% ethanol and is produced for use in alternative fuel vehicles. E85 must comply with ASTM Standard D5798-11.

(Reference Minnesota Statutes 239.761)

Electric Vehicle (EV) Charger Requirements

EV chargers installed in Minnesota must:

1. Be able to be used by any make, model, or type of EV;
2. Comply with state safety standards and standards set by the Society of Automotive Engineers; and
3. Be capable of bi-directional charging once electrical utilities achieve a cost-effective ability to draw electricity from EVs connected to the utility grid.

These requirements may not apply if the installations require significant upgrades.

(Reference Minnesota Statutes 325F.185 and 326B.35)

Ethanol Fuel Blend Dispensing Regulations

Gasoline blended for use in an alternative fuel vehicle (AFV) may contain any percentage of agriculturally derived, denatured ethanol, up to and including 85% (E85). Ethanol and gasoline blended at the point of retail sale in an ethanol-blending fuel dispenser must be clearly labeled “FLEX-FUEL VEHICLES ONLY.” If a retailer sells both ethanol blends for use in AFVs as well as ethanol blends for use in standard combustion engines, the ethanol blends for use in a standard combustion engine must be dispensed from dedicated hoses, nozzles, or other equipment, and clearly labeled for use in conventional vehicles. Retailers are not responsible for customers’ self-service fueling actions as long as they meet these requirements.

(Reference Minnesota Statutes 239.761 and 296A.01)

Medium-Speed Electric Vehicle (EV) Access to Roadways

A medium-speed EV is defined as a four-wheeled motor vehicle powered by electricity that is equipped with a roll cage or a crushproof body design and is capable of achieving a maximum speed of 35 miles per hour (mph) on a paved, level surface. Except with respect to maximum speed, a medium-speed EV must meet or exceed regulations in Title 49 of the Code of Federal Regulations, section 571.500, and successor requirements. A medium-speed EV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. A road authority may prohibit or further restrict the operation of medium-speed EVs on any street or highway under the road authority’s jurisdiction.

(Reference Minnesota Statutes 169.011 and 169.224)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is an electric vehicle that has three or four wheels and is capable of achieving speeds between 20 miles per hour (mph) and 25 mph on a paved level surface. An NEV must be titled according to state law and may be operated on public streets and highways if it meets all equipment and vehicle safety requirements in Title 49 of the Code of Federal Regulations, section 571.500, and successor requirements. An NEV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. A road authority may prohibit or further restrict the operation of NEVs on any street or highway under the road authority’s jurisdiction.

(Reference Minnesota Statutes 169.011 and 169.224)

Electric Vehicle (EV) Charging Tariff

Each public utility selling electricity for retail must file a tariff with the Minnesota Public Utilities Commission (PUC) to allow a customer to purchase electricity solely for the purpose of charging a EV, neighborhood electric vehicle, or medium-speed electric vehicle. The tariff must:

• Contain either a time-of-day or off-peak electricity rate;
• Allow the customer to purchase electricity from the utility’s current mix of energy supply sources or from entirely renewable energy sources; and
• Be available to the residential customer class.

The public utility will make the tariff available to customers within 60 days of PUC approval. At any time, the utility may make revisions to the tariff based on changing costs or conditions. Each public utility providing an EV charging tariff must report quarterly to the PUC on the number of customers who have participated in the tariff, the total amount of electricity sold under the tariff, and any other data the PUC requires.

(Reference Minnesota Statutes 216B.1614)

Electric Vehicle (EV) and Natural Gas Vehicle (NGV) Initiatives

All solicitation documents that include the purchase of passenger automobiles issued under the jurisdiction of the Minnesota Department of Administration must assert the intention of the state to begin purchasing all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), neighborhood electric vehicles, and natural gas vehicles (NGVs). For this requirement to apply, vehicles must meet the state’s performance specifications and have a total life-cycle cost of ownership less than or comparable to that of gasoline-powered vehicles.

An EV is defined as a motor vehicle that can be powered by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other portable sources of electrical current, and meets or exceeds applicable requirements in Title 49 of the Code of Federal Regulations, section 571, and future regulations. A PHEV is defined as an EV that contains an internal combustion engine and uses a battery-powered electric motor to deliver power to the drive wheels. When connected to the electrical grid via an electrical outlet, the vehicle must be able to recharge its battery. The vehicle must have the ability to travel at least 20 miles powered substantially by electricity. An NGV is defined as motor vehicle that is capable of being propelled by natural gas, including compressed natural gas and liquefied natural gas.

(Reference Minnesota Statutes 16C.138 and 169.011)

State Agency Sustainability Plan and Requirements

Each state department or agency must prepare a biennial sustainability plan, that includes ways to modify vehicle use practices, and report annually on progress towards implementing their plan. Each state agency plan must prioritize the purchase of on-road vehicles that use alternative fuels. Vehicle purchasing priority is as follows:

1. Electric vehicles
2. Hybrid electric vehicles
3. Vehicles that use alternative fuels, including biodiesel blends of 20% (B20) or greater, compressed or liquefied natural gas, ethanol blends of 70% (E70) or greater, hydrogen, or propane
4. Gasoline or diesel vehicles

High priority vehicle types may be rejected if the vehicle type is incapable of carrying out its purpose or the total cost of ownership is more than 10% higher than the next vehicle in the preference list. Emergency and law enforcement vehicles are exempt from this requirement. State agency plans must also, among other things, encourage state employees to fuel vehicles with alternative fuels when available and increase the use of renewable fuels derived from agricultural products or waste products.

(Reference Minnesota Statutes 16C.135 and 16C.137)

State Agency Vehicle Procurement and Management Requirement

When purchasing motor vehicles, state agencies must prioritize vehicles that operate on priority alternative fuels.

A committee of representatives from the Minnesota Departments of Administration, Agriculture, Commerce, Natural Resources, and Transportation, as well as the Pollution Control Agency, will implement a state fleet reporting and information management system. The committee will submit findings to the governor and appropriate legislative committees on a bi-yearly basis with recommendations for goals, directives, or legislative initiatives to meet these objectives. For more information, see the Minnesota Office of Enterprise Sustainability website.

(Reference Minnesota Statutes 16C.137 and 16C.138 and House Bill 2310, 2023)