Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF727 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to environment; repealing clean car rules; repealing Minnesota Rules,
3	3	1.3 parts 7023.0150; 7023.0200; 7023.0250; 7023.0300.
4	4	1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
5	5	1.5 Section 1. REPEALER.
6	6	1.6 Minnesota Rules, parts 7023.0150; 7023.0200; 7023.0250; and 7023.0300, are repealed.
7	7	1Section 1.
8	8	25-01947 as introduced01/09/25 REVISOR CKM/VJ
9	9	SENATE
10	10	STATE OF MINNESOTA
11	11	S.F. No. 727NINETY-FOURTH SESSION
12	12	(SENATE AUTHORS: JASINSKI)
13	13	OFFICIAL STATUSD-PGDATE
14	14	Introduction and first reading01/27/2025
15	15	Referred to Environment, Climate, and Legacy 7023.0150SCOPE AND INCORPORATION BY REFERENCE.
16	16	Subpart 1.Scope.To reduce air pollution from vehicles in the state, parts 7023.0150
17	17	to 7023.0300 establish standards for low-emission vehicles and zero-emission vehicles.
18	18	Subp. 2.Incorporation by reference.California Code of Regulations, title 13, sections
19	19	1900, 1956.8(h) (medium-duty vehicle greenhouse gas emission standards only), 1961.2,
20	20	1961.3, 1962.2, 1962.3, 1965, 1968.2, 1976, 1978, 2035, 2037 to 2041, 2046, 2062, 2109,
21	21	2111 to 2121, 2122 to 2135, 2139, and 2141 to 2149, as amended, are incorporated by
22	22	reference. The regulations are not subject to frequent change and are available online at
23	23	https://oal.ca.gov/publications/ccr/.
24	24	Subp. 3.Term substitutions.In applying the incorporated sections of the California
25	25	Code of Regulations, unless the context requires otherwise:
26	26	A."California" means "Minnesota";
27	27	B."CARB," "ARB," or "Air Resources Board" means the agency; and
28	28	C."Executive Officer" means the commissioner.
29	29	Subp. 4.Effective date.Parts 7023.0150 to 7023.0300, except part 7023.0300, subpart
30	30	4, are effective on the date given in a commissioner's notice published in the State Register
31	31	after the standards incorporated by reference in subpart 2 are granted a waiver by the U.S.
32	32	Environmental Protection Agency under United States Code, title 42, section 7543. The
33	33	commissioner's notice must also designate the first effective model year in accordance with
34	34	United States Code, title 42, section 7507.
35	35	7023.0200DEFINITIONS.
36	36	Subpart 1.Applicability.For parts 7023.0150 to 7023.0300, the terms in this part
37	37	have the meanings given. The definitions in parts 7000.0100 and 7005.0100 and California
38	38	Code of Regulations, title 13, section 1900, apply to parts 7023.0150 to 7023.0300 unless
39	39	the terms are otherwise defined in this part.
40	40	Subp. 2.Authorized emergency vehicle."Authorized emergency vehicle" has the
41	41	meaning given in Minnesota Statutes, section 169.011.
42	42	Subp. 3.CARB."CARB" means the California State Air Resources Board as defined
43	43	in California Health and Safety Code, division 26, part 1, chapter 1, section 39003.
44	44	Subp. 4.First effective model year."First effective model year" means the first model
45	45	year for which the standards adopted in parts 7023.0150 to 7023.0300 are effective according
46	46	to the commissioner's notice under part 7023.0150, subpart 4.
47	47	Subp. 5.Light-duty truck."Light-duty truck" has the meaning given under California
48	48	Code of Regulations, title 13, section 1900(b)(11).
49	49	Subp. 6.Medium-duty passenger vehicle."Medium-duty passenger vehicle" has the
50	50	meaning given under California Code of Regulations, title 13, section 1900(b)(12).
51	51	Subp. 7.Medium-duty vehicle."Medium-duty vehicle" has the meaning given under
52	52	California Code of Regulations, title 13, section 1900(b)(13).
53	53	Subp. 8.Military tactical vehicle."Military tactical vehicle" means a land combat
54	54	or transportation vehicle, excluding a rail-based vehicle, that is designed for and used by a
55	55	branch of the United States armed forces or used as an authorized emergency vehicle by or
56	56	for a governmental agency.
57	57	Subp. 9.Model year."Model year" means the manufacturer's annual production
58	58	period that includes January 1 of a calendar year or, if the manufacturer has no annual
59	59	production period, the calendar year. The model year for a motor vehicle manufactured in
60	60	two or more stages is the model year in which the chassis is completed.
61	61	1R
62	62	APPENDIX
63	63	Repealed Minnesota Rules: 25-01947 Subp. 10.Motor vehicle manufacturer."Motor vehicle manufacturer" means a small,
64	64	independent low, intermediate, or large volume manufacturer as defined under California
65	65	Code of Regulations, title 13, section 1900(b)(8), (9), (10), and (22).
66	66	Subp. 11.New motor vehicle."New motor vehicle" means a first effective model
67	67	year or later model year motor vehicle with less than 7,500 miles of use accumulated as of
68	68	the date of sale or lease.
69	69	Subp. 12.Passenger car."Passenger car" has the meaning given under California
70	70	Code of Regulations, title 13, section 1900(b)(17).
71	71	Subp. 13.Transitional zero-emission vehicle or TZEV."Transitional zero-emission
72	72	vehicle" or "TZEV" has the meaning given under California Code of Regulations, title 13,
73	73	section 1962.2(c).
74	74	Subp. 14.Used motor vehicle."Used motor vehicle" means a first effective model
75	75	year or later model year motor vehicle with 7,500 miles or more of use accumulated as of
76	76	the date of sale or lease.
77	77	Subp. 15.Zero-emission vehicle or ZEV."Zero-emission vehicle" or "ZEV" has the
78	78	meaning given under California Code of Regulations, title 13, section 1962.2(a).
79	79	7023.0250LOW-EMISSION VEHICLE STANDARDS.
80	80	Subpart 1.Requirement.Beginning with the first effective model year, all of the
81	81	following that are produced by a motor vehicle manufacturer and delivered for sale or lease
82	82	in the state must be certified to the standards incorporated by reference under part 7023.0150,
83	83	subpart 2, except as provided under subpart 2:
84	84	A.new motor vehicles that are passenger cars, light-duty trucks, medium-duty
85	85	passenger vehicles, and medium-duty vehicles;
86	86	B.new light- or medium-duty motor vehicle engines; and
87	87	C.motor vehicles with a new motor vehicle engine.
88	88	Subp. 2.Exceptions.This part does not apply to:
89	89	A.a used motor vehicle;
90	90	B.a new motor vehicle sold to another dealer;
91	91	C.a new motor vehicle sold to be wrecked or dismantled;
92	92	D.a new motor vehicle sold exclusively for off-highway use;
93	93	E.a new motor vehicle sold for registration out-of-state;
94	94	F.a new motor vehicle that has been certified to standards adopted under authority
95	95	granted in United States Code, title 42, section 7521, and that is in the possession of a rental
96	96	agency in the state and that is next rented with a final destination outside of the state;
97	97	G.an authorized emergency vehicle;
98	98	H.a military tactical vehicle;
99	99	I.a new motor vehicle transferred by inheritance;
100	100	J.a new motor vehicle transferred by court decree;
101	101	K.a new motor vehicle acquired by a state resident to replace a motor vehicle that
102	102	was registered to the resident and that, while out of state, was damaged, became inoperative
103	103	beyond reasonable repair, or was stolen if the replacement motor vehicle is acquired out of
104	104	state at the time the previously owned vehicle was damaged, became inoperative, or was
105	105	stolen; or
106	106	2R
107	107	APPENDIX
108	108	Repealed Minnesota Rules: 25-01947 L.a new motor vehicle purchased and registered in another state by a person who
109	109	is a resident of that state and who subsequently establishes residency in Minnesota. Upon
110	110	registering the new motor vehicle in Minnesota, the person must provide evidence to the
111	111	commissioner of the previous residence and registration.
112	112	Subp. 3.Fleet average emissions.
113	113	A.For first effective model year motor vehicles and all subsequent model year
114	114	motor vehicles to which this part applies, a motor vehicle manufacturer must not exceed
115	115	the fleet average nonmethane organic gas plus oxides of nitrogen emission values under
116	116	California Code of Regulations, title 13, section 1961.2. Credits and debits may be accrued
117	117	and used based on a manufacturer's sales in the state of motor vehicles subject to this part
118	118	according to California Code of Regulations, title 13, section 1961.2(c).
119	119	B.For first effective model year motor vehicles and all subsequent model year
120	120	motor vehicles to which this part applies, a motor vehicle manufacturer must not exceed
121	121	the fleet average greenhouse gas exhaust emission values under California Code of
122	122	Regulations, title 13, section 1961.3. For first effective model year motor vehicles and all
123	123	subsequent model year motor vehicles, manufacturers of medium-duty vehicles produced
124	124	by a motor vehicle manufacturer and delivered for sale or lease in the state must not exceed
125	125	the greenhouse gas emission standards under California Code of Regulations, title 13, section
126	126	1956.8(h)(6). Credits and debits may be accrued and used based on a manufacturer's sales
127	127	in the state of motor vehicles subject to this part according to California Code of Regulations,
128	128	title 13, section 1961.3.
129	129	Subp. 4.Environmental performance labels.Beginning with the first effective model
130	130	year and all subsequent model years, all new motor vehicles subject to this part produced
131	131	by a motor vehicle manufacturer and delivered for sale or lease in the state must be affixed
132	132	with emission control labels and environmental performance labels according to California
133	133	Code of Regulations, title 13, section 1965.
134	134	Subp. 5.Warranty requirements.For all motor vehicles subject to this part, the
135	135	motor vehicle manufacturer must provide defect warranty coverage that complies with
136	136	California Code of Regulations, title 13, sections 2035, 2037 to 2041, and 2046.
137	137	Subp. 6.Recall requirements.For all motor vehicles subject to this part and subject
138	138	to recall in California, the motor vehicle manufacturer must undertake a recall campaign in
139	139	this state according to California Code of Regulations, title 13, sections 2111 to 2121 and
140	140	2122 to 2135, unless the manufacturer demonstrates to the commissioner that the recall is
141	141	not applicable to motor vehicles registered in Minnesota.
142	142	Subp. 7.Reporting requirements.
143	143	A.By May 1 of the calendar year after the end of the model year, a motor vehicle
144	144	manufacturer must annually submit to the commissioner a report demonstrating that the
145	145	motor vehicle manufacturer has met the requirements of subpart 3, item A, for its fleet
146	146	delivered for sale in the state.
147	147	B.By May 1 of the calendar year after the end of the model year, a motor vehicle
148	148	manufacturer must annually submit to the commissioner a report demonstrating that the
149	149	motor vehicle manufacturer has met the requirements of subpart 3, item B, for its fleet
150	150	delivered for sale in the state.
151	151	C.If requested by the commissioner, a motor vehicle manufacturer must provide
152	152	reports in the same format as provided to CARB on all assembly-line emission testing and
153	153	functional test results collected as a result of compliance with this part, warranty claim
154	154	reports, recall reports, and any other reports required by CARB under the regulations
155	155	incorporated by reference under part 7023.0150. The reports must be supplemented with
156	156	data on motor vehicles delivered for sale or registered in Minnesota.
157	157	3R
158	158	APPENDIX
159	159	Repealed Minnesota Rules: 25-01947 D.If the commissioner deems it necessary to administer and enforce this part, the
160	160	commissioner must require a motor vehicle manufacturer subject to this part to submit
161	161	additional documentation, including all certification materials submitted to CARB.
162	162	Subp. 8.Record availability and retention; reporting noncompliance.
163	163	A.Upon oral or written request of the commissioner, a person subject to this part
164	164	must furnish to the commissioner or allow the commissioner to access and copy all records
165	165	that relate to the motor vehicles that are subject to this part and that are relevant for
166	166	determining compliance with this part. Unless otherwise specified, a person subject to this
167	167	part must retain all relevant records for at least five years after creating the records.
168	168	B.If a report issued by a motor vehicle manufacturer under subpart 7 demonstrates
169	169	noncompliance with the fleet average under subpart 3 for a model year, the manufacturer
170	170	must, within 60 days, file a report with the commissioner to document the noncompliance.
171	171	The report must identify all motor vehicle models delivered for sale or lease in the state,
172	172	the models' corresponding certification standards, and the percentage of each model delivered
173	173	for sale in this state and California in relation to total fleet sales in the respective state.
174	174	7023.0300ZERO-EMISSION VEHICLE STANDARDS.
175	175	Subpart 1.Requirement.Beginning with the first effective model year, a motor
176	176	vehicle manufacturer's sales fleet of passenger cars and light-duty trucks produced by motor
177	177	vehicle manufacturers and delivered for sale or lease in the state must contain at least the
178	178	same applicable percentage of ZEVs required under California Code of Regulations, title
179	179	13, section 1962.2.
180	180	Subp. 2.Credit bank; reporting requirements; record availability and retention.
181	181	A.Beginning in the first effective model year, a motor vehicle manufacturer
182	182	subject to this part must open an account in the California ZEV credit system for banking
183	183	credits earned in Minnesota. The account must be opened no later than March 1 of the
184	184	calendar year after the end of the first effective model year. A motor vehicle manufacturer
185	185	must notify the commissioner within 30 days of opening an account in the California ZEV
186	186	credit system for the manufacturer's Minnesota ZEV credits.
187	187	B.At least annually by May 1 of the calendar year after the close of a model year,
188	188	a motor vehicle manufacturer must submit a report to the commissioner that identifies the
189	189	necessary delivery and placement data of all motor vehicles generating ZEV credits and all
190	190	transfers and acquisitions of ZEV credits, according to California Code of Regulations, title
191	191	13, section 1962.2. The report may be amended based on late sales.
192	192	C.Upon oral or written request of the commissioner, a person subject to this part
193	193	must furnish to the commissioner or allow the commissioner to access and copy all records
194	194	that relate to the motor vehicles that are subject to this part and that are relevant for
195	195	determining compliance with this part. Unless otherwise specified, a person subject to this
196	196	part must retain all relevant records for at least five years after creating the records.
197	197	Subp. 3.Requirement to make up ZEV deficit.A motor vehicle manufacturer that
198	198	delivers for sale in the state fewer ZEVs or TZEVs than required to meet its ZEV credit
199	199	obligation in a given model year must make up the deficit by submitting a commensurate
200	200	amount of ZEV credits to the commissioner according to California Code of Regulations,
201	201	title 13, section 1962.2(g)(7). The number of motor vehicles not meeting the ZEV credit
202	202	obligation must be equal to the manufacturer's credit deficit, rounded to the nearest 1/100th
203	203	and calculated according to the equation in California Code of Regulations, title 13, section
204	204	1962.2(g)(8).
205	205	Subp. 4.Early-action credits.
206	206	A.Beginning with model year 2022 and ending at the beginning of the first
207	207	effective model year, a motor vehicle manufacturer may earn early-action ZEV credits for
208	208	delivering ZEVs for sale in the state. A motor vehicle manufacturer choosing to earn
209	209	4R
210	210	APPENDIX
211	211	Repealed Minnesota Rules: 25-01947 early-action ZEV credits under this subpart must notify the commissioner to open an account
212	212	to track early-action ZEV credits in Minnesota no later than March 1 of the calendar year
213	213	after the close of the first model year for which the manufacturer intends to accrue
214	214	early-action credits.
215	215	B.New motor vehicles delivered for sale in the state under this subpart earn
216	216	early-action ZEV credits with the same values established in California Code of Regulations,
217	217	title 13, section 1962.2.
218	218	C.A motor vehicle manufacturer that notifies the commissioner under item A
219	219	must submit a report to the commissioner at least annually by May 1 of the calendar year
220	220	after the close of the model year that identifies the necessary delivery and placement data
221	221	of all motor vehicles generating early-action ZEV credits under this subpart, according to
222	222	California Code of Regulations, title 13, section 1962.2. The report may be amended based
223	223	on late sales.
224	224	D.After the reporting deadline under item C during the first effective model year
225	225	and after receiving notice from a motor vehicle manufacturer under subpart 2, item A, the
226	226	commissioner must load the ZEV credits earned by the motor vehicle manufacturer under
227	227	this subpart into the manufacturer's California ZEV credit system account.
228	228	E.This subpart is effective beginning with a motor vehicle manufacturer's model
229	229	year 2022.
230	230	Subp. 5.Onetime credit allotment.
231	231	A.For the first effective model year, the commissioner must deposit into each
232	232	motor vehicle manufacturer's account a credit allotment equivalent to the first effective
233	233	model year's ZEV credit requirement for that motor vehicle manufacturer.
234	234	B.The credit amount under item A must be calculated for the first effective model
235	235	year according to California Code of Regulations, title 13, section 1962.2(b)(1)(A) and (B).
236	236	C.The commissioner must deposit the onetime credit allotment at the same time
237	237	that the commissioner loads the ZEV credits earned by the motor vehicle manufacturer
238	238	under subpart 4, item D, into the manufacturer's California ZEV credit system account.
239	239	5R
240	240	APPENDIX
241	241	Repealed Minnesota Rules: 25-01947