Minnesota Laws and Incentives

Laws and Regulations

Electric Vehicle (EV) Charger Intentional Damage or Theft Regulation

Individuals may not damage, steal, remove, sever, or break energy transmission equipment, including EV chargers. Violators may face imprisonment and a maximum fine of $10,000.

(Reference Minnesota Statute 609.593)

Electricity as Vehicle Fuel Working Group

The commissioners of transportation, public safety, management and budget, revenue, and commerce must convene an Electricity as Vehicle Fuel Working Group to:

• Evaluate, promote, and provide recommendations to facilitate the development and integration of electricity as vehicle fuel within the state’s transportation, energy, commercial, industrial, and residential sectors;
• Analyze opportunities and barriers to the use of electricity as vehicle fuel;
• Develop a roadmap with policy and funding recommendations to address electric vehicle (EV) surcharges; and
• Analyze policies in other states related to fuel assessment methodology for EVs.

The working group must convene by Sept. 15, 2025, and submit a report of its recommendations to the governor and relevant legislative committees by Feb. 13, 2026. For more information, see the Legislative Coordinating Commission Working Group website.

(Reference Chapter 8, Article 2, Section 118 of the 1st Special Session Laws, 2025)

Public Electric Vehicle (EV) Charger Operator License Requirement

Beginning July 1, 2027, public EV charger operators must obtain a license to operate as a public EV charger from the commissioner at the Minnesota Department of Revenue. Operators must renew their license annually. Additional requirements apply.

(Reference Minnesota Statute 296A.051)

Public Electric Vehicle (EV) Charger Tax

Beginning July 1, 2027, public EV charger operators must pay an excise tax of $0.05 per kilowatt-hour of electricity used to charge EVs. Public EV chargers that provide electricity at no cost and EV chargers with a capacity less than 50 kilowatts are exempt. Operators must report total kilowatt-hours sold each month. Additional requirements apply.

(Reference Chapter 8, Article 2, Sections 76-77 of the Legislature’s 1st Special Session Laws, 2025 and Minnesota Statutes 296A.073 and 296A.075)

Retail Electric Vehicle (EV) Charging Equipment Labeling and Inspection Requirements

Retail EV chargers must display the price per kilowatt-hour in whole cents or tenths of a cent or indicate that the electricity is free of charge. If more than one price might apply, the terms that determine each price must be displayed. Retail EV chargers must also display the power level of the EV charger, type of energy transfer, and cost of any additional fees that may apply to use the EV charger. Labeling must be compliant with Title 16 of the Code of Federal Regulations, Section 309, and with the National Electric Code NFPA 70, Article 625. The Minnesota Department of Commerce must inspect EV chargers for compliance annually. EV charger owners must pay an inspection fee of $100 per port. Additional requirements apply.

(Reference Reference Minnesota Statute 239.90)

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.

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Registration Fees

Beginning Jan. 1, 2026, the Minnesota Driver and Vehicle Services will adjust EV and PHEV registration fees by an amount relative to the vehicle’s manufacturer’s suggested retail price. Between Jan. 1, 2026, and June 30, 2027, the additional registration fee will be a minimum of $150 for EVs and $75 for PHEVs. Beginning July 1, 2027, the additional registration fee will be a minimum of $100 for EVs and $50 for PHEVs. For more information, including the fee schedule, see the Driver and Vehicle Services Vehicle Fees website.

(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 (DOR) 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. The tax rate for propane is $0.239 per gallon, liquified natural gas is $0.192, E85 is $0.2259 per gallon, biodiesel (B100) is $0.318 per gallon, and compressed natural gas is $0.00251 per thousand cubic feet. Exemptions for certain categories of fuel purchasers apply. For more information, including current tax rates and fees, see the DOR Petroleum Tax Fuel Excise Tax Rates and Fees website.

(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 and Governor’s Advisory Council websites.

(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 Specifications

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.

(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 charge 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)

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 (NEVs), 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. A NEV is defined as an electrically powered motor vehicle with three or four wheels that can attain a speed of at least 20 miles per hour but not exceed 25 miles per hour. 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 Vehicle Acquisition and Management Requirement

When purchasing motor vehicles, state agencies must prioritize vehicles that operate on alternative fuels. Priority is based on fuel type in the following order:

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 agencies 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. The Minnesota Department of Administration, in collaboration with the Departments Agriculture, Commerce, Natural Resources, and Transportation, as well as the Pollution Control Agency, must report progress on fleet vehicle acquisitions in the public dashboard for state fleet reporting and information management. The dashboard must also include recommendations for new or adjusted goals, directives, or legislative initiatives to meet fleet vehicle acquisition requirements. For more information, see the Minnesota Office of Enterprise Sustainability website.

(Reference Minnesota Statutes 16C.135, 16C.137, and 16C.138)