Expired, Repealed, and Archived Minnesota Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
The Minnesota Department of Agriculture offer funding assistance to fuel retailers for the installation of equipment to dispense ethanol fuel blends ranging from E15 through E85. Grant amounts are based on the extent to which the installation meets project priorities. For more information, refer to the Clean Air Choice Minnesota Biofuel Infrastructure Project website. (Reference Minnesota Statutes 41A.12)
The Minnesota Department of Agriculture’s Agricultural Growth, Research and Innovation (AGRI) Biofuel Blending Infrastructure Grant program provides grants of up to 35% of the installation and purchase price of biofuel blending equipment. Eligible entities include businesses, local government entities, and Native American Tribal Communities that are biofuel producers, petroleum fuel blenders or distributors, or otherwise involved in blending and supplying fuel. Additional terms and conditions apply. For more information, including how to apply, see the AGRI Biofuel Blending Infrastructure Grant website.
A tax credit is available for investments in a qualified small business that uses or is involved in the research or development of a proprietary technology related to cellulosic ethanol. The tax credit is equal to 25% of the qualified investment, up to $250,000 annually. The credit is available for an investment of up to $1 million over the life of a qualified small business. Eligible small businesses must receive state certification and meet other requirements, such as being headquartered in Minnesota. The tax credit expires December 31, 2017. (Reference Minnesota Statutes 116J.8737)
Dakota Electric offers a rebate of up to $500 to residential customers toward the installation of a qualified Level 1 or Level 2 EVSE. EVSE must be controlled on an off-peak rate and must be installed within Dakota Electric's service area. For more information, including application requirements, see the Dakota Electric Rebates website.
The Minnesota Department of Agriculture may establish a program to provide 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-based crops. Eligible facilities must obtain 80% of their feedstocks from Minnesota; begin production by June 30, 2025; and not produce more than 23,750 MMbtu of biofuel quarterly before July 1, 2015. Additional requirements apply. Payments will not be made for production that occurs after June 30, 2035. (Reference House File 2749, 2016, and Minnesota Statutes 41A.15, 41A.16, and 239.051)
The Minnesota Department of Agriculture may establish a program to provide grants to eligible fuel retailers for equipment and installation costs to dispense E15. Grants are available to retailers with no more than 15 fueling stations in the state. Applications are not currently being accepted (confirmed July 2017). For more information, see the Minnesota Biofuel Infrastructure Partnership website. (Reference Laws of Minnesota 2015, 1-2-4)
State agencies must take all reasonable actions to develop the infrastructure necessary to increase the availability and use of E85 and biodiesel throughout the state. Employees using state-owned vehicles are expected to use E85 fuel when operating flexible fuel vehicles whenever E85 is reasonably available. (Reference Executive Orders 04-10, 2004, and 06-03, 2006)
The Governor's Clean Energy Technology Collaborative (Collaborative) was created for experts to discuss issues that impact the development of new clean energy technologies that use Minnesota expertise, Minnesota resources, and benefit Minnesota by reducing greenhouse gas (GHG) emissions. The Collaborative provides the governor with advice and recommendations on matters relating to advances in technology and research to achieve Minnesota's long-term clean energy goals, including reducing GHG emissions by 80% by 2050 and generating 25% of Minnesota energy from renewable energy resources by the year 2025. For more information on Minnesota's long-term clean energy goals and guidance on ways to achieve these goals, refer to the Clean Energy Technology Roadmap. (Reference Executive Order 08-04, 2008)
The following was repealed by Senate File 1456, 2017: The Minnesota Department of Commerce (DOC), in coordination with the Department of Administration (DOA) and the Pollution Control Agency, must identify opportunities for demonstrating the use of hydrogen fuel cells within state-owned facilities, vehicle fleets, and operations. DOA must purchase and demonstrate hydrogen, fuel cells, and related technologies in ways that strategically contribute to realizing Minnesota's hydrogen economy goals. Additionally, DOC must report to the legislature every two years with a list of proposed pilot projects that contribute to realizing these goals, including those demonstrating hybrid electric technologies, off-road equipment, and vehicles operating on hydrogen fuel or fuels blended with hydrogen.
DOC may accept federal funds, expend funds, and participate in projects to design, develop, and construct multi-fuel hydrogen fueling stations that eventually link urban centers along key trade corridors across Minnesota, North Dakota, South Dakota, Iowa, and Wisconsin. These stations should accommodate a wide variety of vehicle technologies and fueling platforms, including hybrid electric, flexible fuel, and fuel cell vehicles. They may offer gasoline, diesel, ethanol, biodiesel, and hydrogen, and may simultaneously test the integration of on-site combined heat and power technologies with the existing energy infrastructure.
The state's public research and higher education institutions are encouraged to collaborate to establish a regional energy research and education partnership for the production of renewable energy and products, including hydrogen, fuel cells, and related technologies.
(Reference Minnesota Statutes 216B.811 through 216B.815)
MPA offers rebates up to $4,000 to customers for the purchase of a new propane vehicle or the conversion of an existing vehicle to propane. To qualify, vehicles must be registered in Minnesota and conversion systems must be certified by the U.S. Environmental Protection Agency. For a new vehicle, the rebate may only cover the incremental cost of the propane vehicle over the conventional gasoline counterpart. Incentives will be available until all program funds are exhausted. The rebate is available through October 31, 2016.
MPA and the Minnesota Propane Education Promotion and Safety Council offer rebates for commercial propane lawn mowers through the Commercial Mower Incentive Program (Program). Eligible companies include landscape contractors, municipalities, school districts, and universities. The Program provides a $750 rebate to convert an existing gasoline mower to propane, as well as a $1,500 rebate to purchase a new propane mower. To be eligible, converted mowers must displace at least 200 gallons of gasoline per year. Mowers must remain in service for three years after the conversion or purchase and rebate recipients must report the mower fuel use annually.Incentives will be available until all program funds are exhausted.
The NextGen Energy Board (Board) was created to conduct research on how Minnesota can better invest its resources to achieve energy independence and agricultural and resource sustainability. The Board must:
- Examine the future success of alternative fuels in Minnesota, including synthetic gases, biobutanol, hydrogen, methanol, biodiesel, and ethanol;
- Examine the opportunity for additional production of biofuel from agricultural and forestry feedstocks;
- Develop grant programs to assist locally-owned facilities;
- Evaluate state and federal programs to best leverage resources; and
- Work with communities to develop a clean energy program.
(Reference Minnesota Statutes 41A.105)
The Twin Cities Clean Cities Coalition offers funding assistance to fuel retailers for the installation of equipment to dispense E85 to the public. A qualified retailer may apply for a grant in the amount of 50% of eligible project costs. Funding may also be available to fuel retailers for the installation of ethanol blender pumps based on program priorities. Funding is limited, not guaranteed, and expires on April 30, 2014.
The Minnesota Department of Agriculture (Department) must pursue available resources to promote and increase the production and use of biofuels in the state. These efforts should include increasing the availability of E85 fuel dispensers and ethanol blends. The Department outlined the federal, state, and local opportunities under this initiative in their report to the Minnesota Legislature entitled Bioenergy Development. (Reference Senate File 2737, 2010)
Through the Propane Marketers Vehicle Incentive Program (Program), MPA offers $2,000 rebates to convert a gasoline vehicle to propane or to purchase a new propane vehicle. Only retail propane marketers that have pre-registered with MPA are eligible for the incentive. The Program also offers a $1,500 rebate for propane marketers to install a dual-fuel propane-diesel economizer on a diesel vehicle. Rebates are available on a first-come, first-served basis and recipients must report to the Program on vehicle performance. Each entity is only eligible for one propane vehicle conversion or purchase rebate and one diesel economizer rebate. Additional restrictions apply.
A facility that produces transportation fuels derived from cellulosic material may be eligible for a grant to cover 50% of the cost of research, technical assistance, or production equipment for the facility, up to $500,000. To be eligible, a qualified engineer must certify the technology and fuel source. (Reference Minnesota Statutes 41A.105)
The University of Minnesota's Initiative for Renewable Energy and the Environment offers various types of grants to promote statewide economic development; sustainable, healthy and diverse ecosystems; and national energy security through development of bio-based and other renewable resources and processes. Eligible projects include those focused on environmentally sound production of energy, including transportation fuels such as hydrogen and biofuels, from renewable sources; development of energy conservation and efficient energy utilization technologies; energy storage technologies; and analysis of policy options to facilitate adoption of technologies that use or produce low-carbon renewable energy. As of July 2012, funds are available through 2012. (Reference Minnesota Statutes 116C.779)
Minnesota has joined Indiana, Iowa, Kansas, Michigan, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. . Specifically, the Platform sets the following goals:
- Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
- Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
- Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
- By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
Funding is available to assist retailers with the installation and conversion of equipment to dispense biodiesel blends between 10% (B10) and 20% (B20). Funding is based on costs associated with the installation of new equipment or the upgrade of existing equipment. Project estimates must be provided with the application form. Funding is limited and not guaranteed.
State agencies must 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, to operate state motor vehicles if the clean fuels are reasonably available at comparable costs to conventional fuels and are compatible with the intended use of the motor vehicle. Additionally, state agencies must purchase AFVs, which include those capable of being powered by the fuels listed above or motor vehicles powered by electricity or by a combination of electricity and liquid fuel, if such motor vehicles are reasonably available at comparable costs to other vehicles and if the vehicles are capable of carrying out the purpose for which they are purchased. (Reference Minnesota Statutes 16C.135)
Using 2005 as a baseline, the state must achieve a 25% and 50% reduction in gasoline used to operate state agency owned on-road vehicles by 2010 and 2015, respectively. Additionally, the state must achieve a 10% and 25% reduction in the use of petroleum-based diesel fuel for state owned on-road vehicles by 2010 and 2015, respectively. To meet these goals, each state agency will, whenever legally, technically, and economically feasible, ensure that all new on-road vehicles purchased operate on alternative fuels, specifically biodiesel blends of 20% (B20) or greater, ethanol blends of 70% (E70) or greater, hydrogen, or electricity. Alternatively, each state agency must ensure that new on-road vehicles purchased have fuel economy ratings that exceed 30 miles per gallon (mpg) for city usage or 35 mpg for highway usage, including but not limited to hybrid electric and hydrogen vehicles. (Reference Executive Orders 04-08 and 04-10, 2004, and Minnesota Statutes 16C.137)
Through June 30, 2010, an ethanol production incentive of $0.20 per gallon of ethanol produced may be earned by qualified facilities that began production before June 30, 2000. Annual payments are limited to $3 million to any one producer. (Reference Minnesota Statutes 41A.09)
The Commissioner of the Minnesota Department of Transportation was required to conduct a study, in collaboration with other state agencies and stakeholders, to evaluate the current and long-range needs of the state's transportation system, and investigate possible strategies to meet these needs. The study must include the following: 1) identification of options for maintenance and improvement of the state's transportation system, specifically regarding the effects of potential increases in vehicle fuel economy, availability of alternative modes of transportation, and extreme fuel price volatility on future transportation revenues; 2) identification of financial options with particular consideration of environmental impacts such as air and water quality, and greenhouse gas emissions; and 3) evaluation of the impact of the use of EVs and PHEVs on the current funding mechanisms for the state's roadways and an analysis of methods to mitigate the impact. The results of the study were due to the legislature by November 1, 2009. (Reference House File 1250, 2009, and Minnesota Laws 2008, Chapter 287, Article 1, Section 118)
Each state department must seek to reduce air pollution by implementing two or more of the actions outlined in Executive Order 04-08 whenever legally, technically, and economically feasible, subject to the specific needs of the department and responsible management of agency finances. The actions include the purchase or lease of the most fuel-efficient and least polluting vehicles that meet the operational needs of the state department, and fueling state-operated vehicles with the cleanest fuel available. (Reference Executive Order 04-08, 2004)
Minnesota policy states that it is in the long-term interest of the state to promote the development and market penetration of alternative fuels, and to develop additional markets for indigenous crop-based fuels. This section expires in July, 2003. (Reference Minnesota Statutes ?216C.40)