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SF3866 (Legislative Session 94 (2025-2026))

Certain retail fuel transactions retail delivery fee exemption provision

Related bill: HF3531

AI Generated Summary

Purpose

  • The bill aims to exempt certain retail fuel transactions from the state’s retail delivery fee. It does this by adding new definitions for fuel-related products in Minnesota law and clarifying what counts as fuel versus motor or special fuels.

Main Provisions

  • Section 1 — Define Fuel products

    • Adds Minnesota Statutes 2025 Supplement section 168E.01 subdivision 8a:
    • Fuel products means liquefied natural gas (LNG) or liquefied petroleum gas (LPG) as defined in section 296A.01 subdivisions 30 and 31, plus all products defined in section 296A.01 subdivisions 13b, 21a, 30, 31, and 42.
    • This definition is used to identify which items may be eligible for the exemption from the retail delivery fee.

  • Section 2 — Define Diesel exhaust fluid (DEF)

    • Adds Minnesota Statutes 2024 section 296A.01 subdivision 13b:
    • Diesel exhaust fluid (DEF) is a liquid mixture containing 32.5 percent by weight high-purity urea and 67.5 percent by weight deionized water, meeting American Petroleum Institute (API) or International Organization for Standardization (ISO) specifications.
    • DEF is used in a selective catalytic reduction (SCR) system to reduce nitrogen oxide (NOx) emissions from diesel engines.
    • DEF is not considered a motor fuel, gasoline, or special fuel under this chapter.

  • Section 3 — Define Fuel lubricants

    • Adds Minnesota Statutes 2024 section 296A.01 subdivision 21a:
    • Fuel lubricants means petroleum-based or synthetic products (such as motor oil, transmission fluid, gear lubricants, and greases) sold for use in operating, maintaining, or performing in motor vehicles or motor fuel dispensing equipment.
    • These products are not designed or intended to be combusted in an internal combustion engine.
    • Fuel lubricants are not a motor fuel, gasoline, or special fuel under this chapter.

Significant Changes to Existing Law

  • Introduces new definitions for:
    • Fuel products (including LNG/LPG and other defined items)
    • Diesel exhaust fluid (DEF)
    • Fuel lubricants
  • Clarifies that these specific fuel-related items are not motor fuel, gasoline, or special fuel.
  • Establishes a framework to exempt these items from the retail delivery fee when sold at retail.

Practical Impact

  • Retail purchases of LNG, LPG, DEF, and fuel lubricants may be exempt from the retail delivery fee.
  • Businesses and consumers buying these items at retail could see reduced or no delivery fees, depending on how the exemption is applied.

Relevant terms - retail delivery fee - fuel products - LNG (liquefied natural gas) - LPG (liquefied petroleum gas) - diesel exhaust fluid (DEF) - NOx (nitrogen oxides) - SCR (selective catalytic reduction) - urea - deionized water - API (American Petroleum Institute) - ISO (International Organization for Standardization) - motor fuel - gasoline - special fuel - fuel lubricants - petroleum-based - synthetic products - Minnesota Statutes 296A.01 - Minnesota Statutes 168E.01

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2026SenateActionIntroduction and first reading
February 26, 2026SenateActionReferred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 296A.01 subdivision 30 in the definition of fuel products; used as part of cross-references to define fuel products.",
      "modified": []
    },
    "citation": "296A.01",
    "subdivision": "subd. 30"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 296A.01 subdivision 31 in the definition of fuel products; used as part of cross-references to define fuel products.",
      "modified": []
    },
    "citation": "296A.01",
    "subdivision": "subd. 31"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Diesel exhaust fluid is defined in 296A.01 subdivision 13b.",
      "modified": []
    },
    "citation": "296A.01",
    "subdivision": "subd. 13b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Fuel lubricants are defined in 296A.01 subdivision 21a.",
      "modified": []
    },
    "citation": "296A.01",
    "subdivision": "subd. 21a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to 296A.01 subdivision 42 used in the fuel products definition.",
      "modified": []
    },
    "citation": "296A.01",
    "subdivision": "subd. 42"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adds subdivision 8a to 168E.01 to define 'Fuel products' and reference 296A.01 subdivisions 30, 31, 13b, 21a, 30, 31, and 42.",
      "modified": []
    },
    "citation": "168E.01",
    "subdivision": "subd. 8a"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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