Electricity Laws and Incentives in Minnesota
The list below contains summaries of all Minnesota laws and incentives related to electricity.
Laws and Regulations
All-Electric Vehicle (EV) Fee
EVs are subject to an additional registration fee of $75.
(Reference Minnesota Statutes 168.013)
Electric Vehicle (EV) Charger Requirements
EV chargers installed in Minnesota must:
- Be able to be used by any make, model, or type of EV;
- Comply with state safety standards and standards set by the Society of Automotive Engineers; and
- 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)
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)
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)
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.
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)
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)
State Incentives
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.
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) 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:
| Vehicle Type | Rebate Amount |
|---|---|
| New | Up to $2,500 |
| Pre-Owned | Up to $600 |
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 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.
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.
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.
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