Minnesota Propane Laws and Incentives
State Laws and Regulations
Clean Energy Collaborative
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 utilize 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 in order 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. (Reference Executive Order 08-04, 2008)
Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements
State agencies are required to use alternative fuels, including B20-B100 biodiesel blends, compressed or liquefied natural gas, E70-E100 ethanol blends, hydrogen, or liquefied petroleum gas, 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 are required to purchase alternative fuel vehicles, 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 a motor vehicle is reasonably available at comparable costs to other vehicles and if the vehicle is capable of carrying out the purpose for which it is purchased. (Reference Minnesota Statutes 16C.135)
State Agency Energy Plan and Vehicle Acquisition Priorities
State agencies are required to use alternative fuels, including B20-B100 biodiesel blends, compressed or liquefied natural gas, E70-E100 ethanol blends, hydrogen, or liquefied petroleum gas, 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 are required to purchase alternative fuel vehicles, 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 a motor vehicle is reasonably available at comparable costs to other vehicles and if the vehicle is capable of carrying out the purpose for which it is purchased. (Reference Minnesota Statutes 16C.135)
Alternative Fuel Tax
The Minnesota Department of Revenue imposes an excise tax on the first licensed distributor who receives E85 fuel products in the state and on distributors, special fuel dealers, or bulk purchasers of other alternative fuels. E85 is taxed at the pump a rate of $0.1924 per gallon, liquefied petroleum gas is taxed at $0.20325 per gallon, liquefied natural gas is taxed at $0.1626 per gallon, and compressed natural gas is taxed at the rate of $0.2357 per hundred cubic feet. Gasoline is taxed at the rate of $0.271 per gallon. (Reference Minnesota Statutes 296A.07 and 296A.08)
