1.2relating to environment; enacting the Minnesota Clean Car Act; requiring
1.3decreased emission of criteria air pollutants and greenhouse gas pollution from
1.4new motor vehicles; requiring adoption of low emission standards for motor
1.5vehicles; providing for updates as necessary to comply with the federal Clean Air
1.6Act; requiring reports; requiring rulemaking;amending Minnesota Statutes 2008,
1.7section 168A.04, subdivision 1; proposing coding for new law in Minnesota
1.8Statutes, chapter 116.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10    Section 1. [116.393] CITATION.
1.11Sections 116.393 to 116.399 may be cited as the "Minnesota Clean Car Act."

1.12    Sec. 2. [116.394] DEFINITIONS.
1.13    Subdivision 1. Applicability. The terms used in sections 116.393 to 116.399 have
1.14the meanings given in this section and California Code of Regulations, title 13, sections
1.151900 to 2235.
1.16    Subd. 2. CARB. "CARB" means the California Air Resources Board.
1.17    Subd. 3. CCR. "CCR" means the California Code of Regulations.
1.18    Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
1.19Control Agency.
1.20    Subd. 5. E85. "E85" has the meaning given in section 296A.01, subdivision 19.
1.21    Subd. 6. Flexible fuel vehicle. "Flexible fuel vehicle" means a vehicle that may
1.22run on fuel other than gasoline.
1.23    Subd. 7. Light-duty truck. "Light-duty truck" means any 2013 and subsequent
1.24model year motor vehicle rated at 8,500 pounds gross weight or less, and any other motor
2.1vehicle rated at 6,000 pounds gross vehicle weight or less, which is designed primarily
2.2for purposes of transportation of property.
2.3    Subd. 8. Low-emission vehicle program. "Low-emission vehicle program" means
2.4the low-emission vehicle regulations and executive orders adopted by CARB under CCR,
2.5title 13, sections 1900, 1956.8(g) and (h), 1960.1, 1961, 1961.1, 1962, 1962.1, 1965,
2.61968.2, 1968.5, 1976, 1978, 2035, 2037, 2038, 2039, 2040, 2046, 2109, 2111, 2112, 2113,
2.72114, 2115, 2116, 2117, 2118, 2119, 2120, 2122, 2123, 2124, 2125, 2126, 2127, 2128,
2.82129, 2130, 2131, 2132, 2133, 2135, 2141, 2142, 2143, 2144, 2145, 2146, 2147, 2148,
2.92149, 2235, and Appendix A to Article 2.1.
2.10    Subd. 9. Medium-duty passenger vehicle. "Medium-duty passenger vehicle"
2.11means any medium-duty vehicle with a gross vehicle weight rating of less than 10,000
2.12pounds that is designed primarily for the transportation of persons. Medium-duty
2.13passenger vehicle does not include a vehicle that:
2.14(1) is an "incomplete truck," that is, a truck that does not have the primary load
2.15carry device or container attached;
2.16(2) has a seating capacity of more than 12 persons;
2.17(3) is designed for more than nine persons in seating rearward of the driver's seat; or
2.18(4) is equipped with an open cargo area of 72.0 inches in interior length or more.
2.19A covered box not readily accessible from the passenger compartment is an open cargo
2.20area for purposes of this definition.
2.21    Subd. 10. Medium-duty vehicle. "Medium-duty vehicle" means any 2013 and
2.22subsequent model year vehicle having a manufacturer's gross vehicle weight rating
2.23between 8,501 and 14,000 pounds.
2.24    Subd. 11. Motor vehicle. "Motor vehicle" means a passenger car, light-duty truck,
2.25medium-duty passenger vehicle, or medium-duty vehicle. Motor vehicle does not include
2.26a motorcycle, snowmobile, all-terrain vehicle, boat, aircraft, tractor, or farm machinery.
2.27    Subd. 12. New. "New" means a motor vehicle with a model year of 2013 or later and
2.28that is in the possession of a manufacturer, distributor, or wholesaler, or has been sold only
2.29to the holders of a valid sales and service agreement, franchise, or contract, granted by the
2.30manufacturer, distributor, or wholesaler for the sale of the motor vehicle and which is in
2.31fact new and on which the original title has not been issued from the franchised dealer.
2.32    Subd. 13. Passenger car. "Passenger car" means any motor vehicle designed
2.33primarily for transportation of persons and having a design capacity of 12 persons or less.

2.34    Sec. 3. [116.395] APPLICABILITY.
3.1    Sections 116.393 to 116.399 apply to all new motor vehicles sold, leased, offered
3.2for sale or lease, imported, delivered, purchased, rented, acquired, received, titled, or
3.3registered in the state starting with the 2013 model year and each model year thereafter.

3.4    Sec. 4. [116.396] EXEMPTIONS.
3.5    (a) The following motor vehicles are exempt from sections 116.393 to 116.399:
3.6    (1) a motor vehicle that is registered under section 168.10;
3.7(2) a commercial motor vehicle, as defined in section 169.011, subdivision 16;
3.8    (3) an authorized emergency vehicle, as defined in section 169.011, subdivision 3;
3.9    (4) a motor vehicle transferred by a dealer to another dealer for ultimate sale outside
3.10of the state;
3.11    (5) a motor vehicle transferred for use exclusively off-highway;
3.12    (6) a motor vehicle transferred for registration out-of-state;
3.13    (7) a motor vehicle granted a national security or testing exemption under section
3.14203(b)(1) of the Clean Air Act, United States Code, title 42, section 7522(b)(1);
3.15    (8) a motor vehicle held for daily lease or rental to the general public that is
3.16registered and principally operated outside of the state. For purposes of this clause, a
3.17motor vehicle is deemed to be principally operated outside of the state if it is registered
3.18outside of the state in accordance with the interjurisdictional agreement on apportioning
3.19vehicle registration fees developed under the Intermodal Surface Transportation and
3.20Efficiency Act of 1991, Public Law 102-240, Statutes at Large, volume 105, page 1914,
3.21and known as the International Registration Plan, or a successor plan for apportioning
3.22vehicle registration fees internationally;
3.23    (9) a motor vehicle engaged in interstate commerce that is registered and principally
3.24operated outside of the state;
3.25    (10) a motor vehicle acquired by a resident of the state for the purpose of replacing
3.26a vehicle registered to the resident that was damaged, or became inoperative, beyond
3.27reasonable repair or was stolen while out of state if the replacement vehicle is acquired
3.28out of state at the time the previously owned vehicle was either damaged or became
3.29inoperative or was stolen;
3.30    (11) a motor vehicle transferred by inheritance or court decree;
3.31    (12) a motor vehicle defined as a military tactical vehicle or engines used in military
3.32tactical vehicles including a vehicle or engine excluded from regulation under Code of
3.33Federal Regulations, title 40, section 85.1703, relating to section 216(2) of the Clean
3.34Air Act;
3.35    (13) a motor vehicle titled or registered in the state before model year 2013;
4.1    (14) a motor vehicle having a certificate of conformity issued under the Clean Air
4.2Act and originally registered in another state by a resident of that state who subsequently
4.3establishes residence in this state and upon registration of the vehicle provides satisfactory
4.4evidence to the Department of Public Safety of the previous residence and registration;
4.5    (15) a motor vehicle transferred for the purpose of salvage; and
4.6    (16) a motor vehicle sold from one licensed dealer to another licensed dealer.
4.7    (b) To title or register an exempt motor vehicle, the person seeking title or
4.8registration shall provide satisfactory evidence, as determined by the Department of Public
4.9Safety, demonstrating that the exemption is applicable.

4.10    Sec. 5. [116.397] ADMINISTRATION; POLLUTION CONTROL AGENCY.
4.11    Subdivision 1. Rules. (a) The Pollution Control Agency, in accordance with federal
4.12Clean Air Act requirements, shall adopt rules, as authorized under the federal Clean Air
4.13Act, United States Code, title 42, section 7507, to regulate emissions from new motor
4.14vehicles sold in the state. The rules:
4.15    (1) must be adopted under section 14.388, subdivision 1, clause (3);
4.16    (2) except as provided in clause (3), must incorporate by reference the low emission
4.17vehicle program;
4.18    (3) must not include the 15-year or 150,000-mile extended warranty specified in
4.19CCR, title 13, section 1962, for partial zero emission vehicles, provided that partial zero
4.20emission vehicles delivered for sale to Minnesota are equipped with the same quality
4.21components as partial zero emission vehicles supplied to areas where the full 15-year or
4.22150,000-mile warranty remains in effect. This section does not amend the requirements of
4.23CCR, title 13, section 1962, that indicate the warranty period for a zero emission energy
4.24storage device used for traction power will be ten years;
4.25    (4) must not include any fuel standards set forth in CCR, section 2250, et seq.;
4.26    (5) must not require a reduction in vehicle weight, a reduction in the speed limit
4.27allowed on any street or highway in the state, a reduction in the amount of vehicle miles
4.28traveled, or a limitation or reduction of any vehicle category in the state, specifically
4.29including but not limited to sport-utility vehicles and light-duty trucks; and
4.30    (6) must be amended as necessary in a timely fashion to minimize the time during
4.31which Minnesota's rules are not consistent with the low-emission vehicle program, as
4.32required under United States Code, title 42, section 7507. Amendments under this clause
4.33must be made under section 14.388, subdivision 1, clause (3). Prior to considering
4.34adoption of an amendment under this clause, the commissioner must notify the governor,
4.35the commissioners of agriculture and commerce, the chairs and ranking minority members
5.1of the senate and house of representatives committees with primary jurisdiction over
5.2agriculture policy, agriculture finance, commerce policy, commerce finance, environment
5.3policy, and environment finance of the commissioner's intention to adopt an amendment
5.4under this clause.
5.5    (b) The emission standards adopted under this section may not be extended to
5.6off-road vehicles or engines including, but not limited to, off-highway vehicles as defined
5.7in section 84.771, snowmobiles, boats, aircraft, lawn mowers, tractors, or farm machinery.
5.8    (c) Any portion of the low-emission vehicle program requiring a federal waiver
5.9under the Clean Air Act to become effective may not be enforced in Minnesota unless and
5.10until the requisite federal waiver is issued.
5.11    Subd. 2. Report. Beginning January 1, 2010, and each year thereafter, the
5.12commissioner must submit to the governor, the commissioners of agriculture and
5.13commerce, the chairs and ranking minority members of the senate and house of
5.14representatives committees with primary jurisdiction over agriculture policy, agriculture
5.15finance, commerce policy, commerce finance, environment policy, and environment
5.16finance a report of:
5.17    (1) the information submitted by manufacturers under section 116.399; and
5.18    (2) to the extent the information is available, for each of the 50 states:
5.19    (i) the number of E85 pumps operating in each state;
5.20    (ii) gross sales of E85 in each state; and
5.21    (iii) the market share of E85 as a proportion of total fuel purchased in each state for
5.22motor vehicle use.
5.23    Subd. 3. Comment submission. The commissioner shall submit comments to
5.24CARB on proposed or final-form rulemakings amending the low-emission vehicle
5.25program.

5.26    Sec. 6. [116.398] IMPLEMENTATION.
5.27    Subdivision 1. Clean air requirement. Starting with the model year 2013, a person
5.28may not sell, import, deliver, purchase, lease, rent, acquire, receive, title, or register a new
5.29motor vehicle subject to the Minnesota Clean Car Act in this state that does not comply
5.30with the low-emission vehicle program.
5.31    Subd. 2. Compliance with fleetwide average requirements. Starting with the
5.32model year 2013, compliance with the fleetwide average requirements in the low-emission
5.33vehicle program shall be demonstrated for each motor vehicle manufacturer based on the
5.34number of new motor vehicles delivered for sale in Minnesota.
6.1    Subd. 3. Credits and debits. Credits and debits for calculating the pollutants
6.2regulated on a fleet average basis shall be based on the number of new motor vehicles
6.3delivered for sale in Minnesota and may be accrued and utilized by each manufacturer
6.4according to procedures in the low-emission vehicle program.
6.5    Subd. 4. State-specific data. In determining a manufacturer's compliance
6.6with the fleetwide emissions standards for all pollutants regulated on a fleetwide
6.7basis, the commissioner shall review only Minnesota-specific sales information and
6.8Minnesota-specific E85 utilization rates.

6.9    Sec. 7. [116.399] MANUFACTURER RESPONSIBILITIES.
6.10    Subdivision 1. Flexible fuel vehicle report. Manufacturers shall provide annually
6.11to the commissioner a list of the models of flexible fuel vehicles they offer for sale in
6.12Minnesota, which of the flexible fuel vehicles they offer for sale that are engineered
6.13for optimal performance when running on E85, which of the models are simply E85
6.14compatible, and what percent of the total number of vehicles offered for sale in Minnesota
6.15are flexible fuel vehicles.
6.16    Subd. 2. Domestic supply report. Manufacturers shall provide annually to the
6.17commissioner a report indicating what percentage of steel used in motor vehicles delivered
6.18for sale in Minnesota was produced in the United States. Manufacturers shall provide
6.19annually to the commissioner a report indicating what percentage of motor vehicles
6.20delivered for sale in Minnesota were manufactured in the United States.
6.21    Subd. 3. Deliveries report. For the purposes of determining compliance with the
6.22Minnesota Clean Car Act, commencing with the 2013 model year, each manufacturer
6.23shall submit annually to the commissioner, within 60 days of the end of each model year,
6.24a report documenting the total deliveries for sale of motor vehicles in each test group
6.25during that model year in the state.
6.26    Subd. 4. Fleet average emissions report. For purposes of determining compliance
6.27with the Minnesota Clean Car Act, each motor vehicle manufacturer shall submit annually
6.28to the commissioner by March 1 of the calendar year following the close of the completed
6.29model year, a report of the fleet average emissions of its total deliveries for sale of motor
6.30vehicles in each test group for Minnesota for that particular model year for each pollutant
6.31regulated on a fleetwide basis. The fleet average report, calculating compliance with the
6.32fleetwide exhaust emission averages, shall be prepared according to the procedures in the
6.33low-emission vehicle program.
6.34    Subd. 5. Fleet average report content. Fleet average reports must, at a minimum,
6.35identify the total number of vehicles, including offset vehicles, sold in each test group
7.1delivered for sale in Minnesota, the specific vehicle models comprising the sales in
7.2Minnesota and the corresponding certification standards, and the percentage of each model
7.3sold in Minnesota in relation to total fleet sales.

7.4    Sec. 8. Minnesota Statutes 2008, section 168A.04, subdivision 1, is amended to read:
7.5    Subdivision 1. Contents. The application for the first certificate of title of a vehicle
7.6in this state shall be made by the owner to the department on the form prescribed by
7.7the department and shall contain:
7.8    (1) the first, middle, and last names, the dates of birth, and addresses of all owners
7.9who are natural persons, the full names and addresses of all other owners;
7.10    (2) a description of the vehicle including, so far as the following data exists, its
7.11make, model, year, identifying number, type of body, and whether new or used;
7.12    (3) the date of purchase by applicant, the name and address of the person from whom
7.13the vehicle was acquired, the names and addresses of any secured parties in the order of
7.14their priority, and the dates of their respective security agreements;
7.15    (4) with respect to motor vehicles subject to the provisions of section 325E.15, the
7.16true cumulative mileage registered on the odometer or that the actual mileage is unknown
7.17if the odometer reading is known by the owner to be different from the true mileage;
7.18    (5) with respect to vehicles subject to section 325F.6641, whether the vehicle
7.19sustained damage by collision or other occurrence which exceeded 70 percent of the
7.20actual cash value; and
7.21    (6) if required under section 116.396, paragraph (b), satisfactory evidence of an
7.22applicable exemption from sections 116.393 to 116.399; and
7.23    (7) any further information the department reasonably requires to identify the vehicle
7.24and to enable it to determine whether the owner is entitled to a certificate of title, and the
7.25existence or nonexistence and priority of any security interest in the vehicle.

7.26    Sec. 9. RULE ADOPTION.
7.27    The rules required under Minnesota Statutes, section 116.397, subdivision 1, must be
7.28adopted and made effective by September 30, 2009, and are effective for motor vehicles
7.29with a model year of 2013 and later.

7.30    Sec. 10. EFFECTIVE DATE.
7.31    Sections 1 to 9 are effective the day following final enactment.