SF5082

Purpose

This bill updates rules about fuel signage and labeling. It aims to inform consumers about fuel taxes on gasoline and diesel at the pump and to clarify how ethanol blends are handled for vehicles that use alternative fuels or flex-fuel options.

Key Provisions

• Gas tax signage on petroleum dispensers (Section 1)

  • Signs must be displayed on retail fuel dispensers with at least 12-point font.
  • For regular/premium gasoline, the sign must state: “The price for each gallon of gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and bridges according to the Minnesota Constitution.”
  • For on-road diesel, the sign must state: “The price for each gallon of diesel fuel includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and bridges according to the Minnesota Constitution.”
  • The director must distribute these signs to the owners or operators of retail fuel dispensers and coordinate the distribution with other duties.
  • If the gasoline tax amount changes, the director must provide revised signs within 12 calendar months.
  • The director may not assess penalties, fines, or fees on dispenser owners for a missing, destroyed, defaced, or damaged gas tax sign.

• Ethanol blends and flex-fuel labeling (Section 2)

  • Gasoline blended with ethanol for use in alternative fuel vehicles may contain up to 85% agriculturally derived denatured ethanol by volume, and must comply with general blending provisions.
  • Blends can be made by an ethanol blender or at the retail fueling dispenser, which must be clearly labeled “FLEXFUEL VEHICLES ONLY.”
  • If blending is done at an ethanol blender and the resulting gasoline-ethanol blend is dispensed at a dispenser that also serves standard gasoline, the alcohol blend for standard engines must be dispensed from a dedicated hose/nozzle or other conduit that is clearly labeled for standard engines.
  • A person responsible for the product who complies with the labeling requirement is not liable for a self-service fueling action taken by a retail customer.

Significant Changes to Existing Law

• Adds formal signage requirements at fuel dispensers to disclose state and federal fuel taxes and the designated use of tax revenue.
• Establishes deadlines and penalties-related clarifications for updates to tax signs (no penalties for signage issues).
• Introduces explicit rules governing ethanol-ethanol blends up to 85% in gasoline intended for alternative fuel vehicles, including labeling and dispenser separation requirements to distinguish blends for AFVs vs. standard engines.

Implementation and Compliance Notes

• The state director is the responsible party for distributing and updating signs and ensuring signage reflects current tax amounts.
• Updates to signs must occur within 12 calendar months after tax amounts change.
• The bill emphasizes labeling clarity and consumer information, as well as operational distinctions between blends for AFVs and conventional vehicles.

Potential Impacts

• Drivers will see explicit tax amounts included in pump prices, along with the note that tax revenue is dedicated to roads and bridges.
• Retailers may need to adjust signs when tax rates change and ensure signage meets the 12-point font requirement.
• Ethanol blending for AFVs may increase visibility of ethanol content and require dedicated dispensing equipment or clearly labeled separate paths for AFV vs. standard-engine fueling.

Relevant terms - gas tax sign - 12-point font - The price for each gallon of gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 18.4 cents per gallon - The price for each gallon of diesel fuel includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents per gallon - roads and bridges - Minnesota Constitution - state fuel tax - revenue from the state fuel tax - onroad diesel fuel - director - 12 calendar months - penalties, fines, or fees - GASOLINE blended with ethanol - ethanol blended for use in an alternative fuel vehicle - agriculturally derived denatured ethanol - up to 85 percent - FLEXFUEL VEHICLES ONLY - ethanol blender - ethanol-blending fuel dispenser - gasoline-ethanol blend - standard combustion engines - alternative fuel vehicles (AFV) - self-service fueling - dedicated hose/nozzle - labeling for standard engines - self-service fueling action - responsibility of the product owner/operator