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S.F. No. 2053 - Propane Fuel Purchase Program

(first engrossment)

Author: Senator Julie Rosen
Prepared by: Dalene Sliwa, Senate Research (651/296-1890)
Date: April 13, 2007

Section 1, subdivision 1, authorizes the Commissioner of Commerce to operate a propane fuel purchase program. The Commissioner may contract at any time of the year to purchase the lesser of one-third of the liquid propane fuel consumed by Low-Income Home Energy Assistance Program (LIHEAP) recipients during the previous heating season or the amount that can be purchased with available funds.

Subdivision 2 authorizes the Commissioner to establish a hedge account with realized program savings due to prepurchasing, which can be used to compensate program recipients with an amount up to the difference in cost for fuel provided to the recipient if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. Prohibits more than ten percent of the aggregate prepurchase program savings to be used to establish the hedge account.

Subdivision 3 requires the Department of Commerce to issue a report by June 30, 2008, that contains the cost per gallon of prepurchased fuel, the total gallons of fuel prepurchased, the average cost of propane each month between October and April, the number of energy assistance program households receiving prepurchased fuel, and the average savings accruing or benefit increase provided to energy assistance households.

Section 2, paragraph (a), prohibits a dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil who has signed a low-income home energy assistance program vendor agreement with the Department of Commerce from refusing to deliver the fuel to any person located within the normal delivery area who receives direct grants under the low-income energy assistance program as long as the person requests delivery, is capable of making full payment, is not behind in payments, and there is fuel available to deliver.

Paragraph (b) prohibits the dealer or distributor making a delivery to a recipient of direct grants under the low-income home energy assistance program from charging an additional cost or fee that would not be charged to any other customer and requires that discount programs must be made available on the same basis as with any other customer.

DWS:cs




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