MN HF1731

Establishes a liquid fuel modernization fee of $13 per 1,000 gallons on petroleum products, imposed July 1, 2023 through June 30, 2033, with revenue collected through existing distributor tax returns.

Creates a special revenue account to fund a reimbursement program providing 65% of equipment and labor costs (up to $800,000 per entity annually) for installing higher biofuel blend-compatible storage and dispensing infrastructure at retail fueling sites and bulk plants.

Requires the Commissioner of Commerce to implement the reimbursement program in consultation with a newly created Liquid Fuel Modernization Board composed of state agency representatives and industry appointees.

Sets a state goal that by December 31, 2028, at least 50% of retail gasoline storage and dispensing equipment be certified for and offering the highest ethanol blend authorized by law.

Requires annual reporting to legislative committees on progress toward the 50% equipment compatibility goal and total reimbursement expenditures; all provisions expire June 30, 2034.