HF4107

Purpose

• Update and clarify signs and labels at retail petroleum dispensers to inform customers about gas taxes and to regulate ethanol-gasoline blends for flex-fuel vehicle use.

Main Provisions

• Section 1: Gas tax signs on petroleum dispensers

  • Signs must be at least 12-point font and affixed on retail petroleum dispensers.
  • For regular or premium gasoline:
  • A sign must read: “The price for each gallon of gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 18.4 cents per gallon.”
  • The tax revenue may be used only for roads and bridges, per the Minnesota Constitution.
  • For on-road diesel fuel:
  • A sign must read: “The price for each gallon of diesel fuel includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents per gallon.”
  • The tax revenue may be used only for roads and bridges, per the Minnesota Constitution.
  • The (state) director must distribute these signs to dispenser owners/operators and coordinate their distribution with other duties as possible.
  • If the gasoline tax amount changes, the director must update signs within 12 calendar months.
  • The director may not penalize, fine, or charge a fee to the owner/operator if a sign is missing, destroyed, defaced, or damaged.

• Section 2: Gasoline blended with ethanol for alternative-fuel vehicles

  • Gasoline blended with ethanol for use in an alternative fuel vehicle (as defined in law) may contain up to 85% agriculturally derived denatured ethanol by volume.
  • The gasoline/ethanol blend must comply with general provisions for gasoline-ethanol blends.
  • If the blend is made at an ethanol blender, the blend percentage must be clearly identified. If blended at the point of retail sale in an ethanol-blending dispenser labeled FLEXFUEL VEHICLES ONLY, it must clearly identify the blend.
  • If a product uses an ethanol-blending dispenser to dispense both:
  • The gasoline blended with ethanol for standard engines must be dispensed from a hose/nozzle or other conveyance dedicated solely to that standard blend and clearly labeled as such.
  • The responsible person is not liable for self-service fueling actions taken by customers.

Significant Changes to Existing Law

• Adds specific signage requirements for gas tax information on retail gasoline and diesel dispensers (Minnesota Statutes §239.7511).
• Establishes updated tax-sign content, font size, and distribution responsibilities, plus a 12-month update window when tax amounts change.
• Clarifies labeling and handling requirements for ethanol-ethanol blends intended for alternative-fuel vehicles, including FLEXFUEL labeling and dedicated dispensing equipment to separate standard gasoline-ethanol blends from blends for flex-fuel vehicles.

Practical Implications

• Consumers will more easily see exact tax portions included in gasoline and diesel prices and understand that tax revenue supports roads and bridges.
• Gas stations will need to ensure signs are present, legible, and kept up to date, and may need to update signs within a year of tax changes.
• Fuel retailers must clearly label FLEXFUEL options and ensure proper separation of blends when dispensing multiple fuels from a single site.

Relevant Terms - gas tax sign - 12-point font - The price for each gallon of gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 18.4 cents per gallon - The price for each gallon of diesel fuel includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents per gallon - roads and bridges - Minnesota Constitution - signs distribution - 12 calendar months - no penalty for missing/destroyed signs - Minnesota Statutes §239.7511 - Subd. 4b - Gasoline blended with ethanol - agriculturally derived denatured ethanol - up to 85 percent ethanol - FLEXFUEL VEHICLES ONLY - ethanol-blending dispenser - clearly identified percent ethanol - dedicated hose/nozzle for standard gasoline-ethanol blend - self-service fueling responsibility