Subd. 1. Definition.

For purposes of this section "cleaner fuels" means:

1. (1) biodiesel blends of 20 percent or greater by volume (B20-B100);
2. (2) compressed natural gas;
3. (3) ethanol blends of 70 percent or greater by volume (E70-E100);
4. (4) hydrogen;
5. (5) liquefied natural gas; and
6. (6) liquefied petroleum gas.

Subd. 2. Fuel purchases.

When purchasing fuel for use in the enterprise fleet or for use in a motor vehicle owned or leased by an agency, the commissioner or the agency shall purchase, and shall require persons purchasing on their behalf to purchase, cleaner fuels for use in the motor vehicle if cleaner fuels are reasonably available at similar costs to other fuels and if cleaner fuels are compatible with the use to which the motor vehicle is put.

Subd. 3. Vehicle purchases.

1. (a) Consistent with section 16C.137, subdivision 1, when purchasing a motor vehicle for the enterprise fleet or for use by an agency, the commissioner or the agency shall purchase the motor vehicle according to the following vehicle preference order:

   1. (1) an electric vehicle;
   2. (2) a hybrid electric vehicle;
   3. (3) a vehicle capable of being powered by cleaner fuels; and
   4. (4) a vehicle powered by gasoline or diesel fuel.

2. (b) The commissioner may only reject a vehicle that is higher on the vehicle preference order if:

   1. (1) the vehicle type is incapable of carrying out the purpose for which it is purchased; or
   2. (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten percent higher than the next vehicle type in the vehicle preference order.