Minnesota Incentives and Laws for HEVs / PHEVs
The list below contains summaries of all Minnesota incentives and laws related to HEVs / PHEVs.
Laws and Regulations
State Agency Sustainability Plan and Requirements
State agencies must establish interagency teams to develop and implement sustainability goals that reduce state vehicle petroleum consumption. In addition, each state department or agency must prepare an annual sustainability plan that includes ways to modify vehicle use practices, and report annually on progress towards implementing their plan. Each state agency plan must be based on following targets and mandates:
- Using 2005 as a baseline, the state must achieve a 50% reduction in gasoline used to operate state agency owned on-road vehicles by 2015;
- Using 2005 as a baseline, the state must achieve a 25% reduction in the use of petroleum-based diesel fuel for state owned on-road vehicles by 2015;
- When reasonably possible, state agencies must purchase on-road 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, propane, or electricity, or (with the exception of buses, snowplows, and construction vehicles) have a fuel economy rating that exceeds 30 miles per gallon (mpg) in the city and 35 mpg on the highway;
- When reasonably possible, state employees must fuel vehicles capable of operating on an alternative fuel with that fuel;
- State agencies must increase the use of renewable fuels derived from agricultural products or waste products; and
- State agencies must increase the use of technology for delivering information and services in order to reduce reliance on the state's fleet.
Plug-In Electric Vehicle 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), and neighborhood electric vehicles (NEVs) as soon as they become commercially available. Vehicles must meet the state's performance specifications and be priced no more than 10% above the price for comparable 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 an EV containing an internal combustion engine that 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. (Reference Minnesota Statutes 16C.138 and 169.011)

