HF4673

Purpose

This bill aims to improve access to E15 gasoline (gasoline containing 15% ethanol) by requiring retailers to offer E15, monitoring E15 supply and prices, and enabling waivers or administrative adjustments under certain conditions. It also directs rulemaking and data-sharing processes to implement the new requirements.

Key Definitions (as used in the bill)

• E15: gasoline containing 15 percent ethanol by volume
• Department: Department of Agriculture
• Commissioner: Commissioner of Agriculture
• Fuel station: location where gasoline is offered for sale
• Retailer: person who offers for sale, sells, or dispenses gasoline

Main Provisions

• Existing retailers (by 2030)

  • Retailers with compatible infrastructure must advertise for sale and offer E15 from at least one dispenser that is always capable of dispensing gasoline while in operation.

• New retailers (by 2028)

  • New fuel stations opening must offer E15 from at least 50% of dispensers that are always capable of dispensing gasoline while in operation.

• Suspension and adjustments (price/availability-based)

  • The Commissioner must periodically check wholesale E15 price and availability and report to the governor.
  • The governor, after consulting with the Commissioner of Agriculture and the Commissioner of Commerce, may adjust E15 requirements by executive order if there is a price disparity causing economic hardship or if E15 becomes unavailable. Any adjustment is for a set period, and normal requirements resume after the period ends.

• Small retailer waiver

  • The Commissioner may waive E15 requirements for retailers with annual sales not exceeding $300,000.
  • Retailers can apply for a waiver with evidence of low annual sales; the application must be signed and sworn true.
  • The Department of Revenue may certify a retailer’s average total gasoline gallonage for a specified period, using site-specific data from required reports (or other methods if needed). Shared data remains nonpublic and is used only to evaluate the waiver and issue it.
  • Rules to administer waivers may be adopted by the Department of Revenue and the Department of Agriculture.

• Incompatible infrastructure waiver

  • The Commissioner can issue an administrative order waiving E15 requirements if the retailer’s gasoline tanks/infrastructure are older or incompatible, or if upgrades would cost more than $100,000.
  • Retailers can apply for this waiver with evidence, including inventory details and possibly a certified inspection report.
  • The Commissioner may inspect the site and must review and decide on the waiver within 120 days of filing.

• Terminable events

  • Waivers terminate if: the retailer stops advertising/selling gasoline, or a gasoline tank is installed, replaced, or converted.

• Waiver publication

  • The Commissioner must publish a copy of any waiver order on the Department’s website within 10 days of issuance, and the order takes effect on publication unless a later effective date is stated.

• Rulemaking and coding

  • The bill authorizes rulemaking to implement this new law in Minnesota Statutes chapter 239.

Significant Changes to Existing Law

• Creates a formal requirement for E15 access at both existing and new retail locations, with a phased timeline (2028 for new stations; 2030 for existing stations).
• Establishes a system for suspending or adjusting E15 requirements based on price, availability, and economic hardship, including governor’s executive orders.
• Introduces waivers for small retailers and for those with incompatible infrastructure or expensive upgrades, including procedures for data sharing and enforcement.
• Adds data sharing provisions between the Department of Revenue and the Department of Agriculture, while protecting certain data as nonpublic.
• Adds concrete inspection, review timelines, and public posting requirements for waivers.

Practical Implications

• Consumers may see broader E15 access over time, depending on waivers and infrastructure readiness.
• Retailers could face new installation or dispenser requirements, with potential exemptions for small businesses or those with older infrastructure.
• Government oversight and potential short-term price-related adjustments could affect E15 availability in the market.

Relevant Terms E15 ethanol Department of Agriculture Commissioner of Agriculture fuel station retailer gasoline dispenser existing retailers new retailers wholesale E15 price economic hardship executive order small retailer waiver annual sales Department of Revenue nonpublic data data sharing incompatible infrastructure waiver administrative order upgrades terminable events waiver publication rulemaking Minnesota Statutes chapter 239