HF 589

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; establishing a clean energy capital equipment loan
program; providing for cellulosic biofuel development; providing bioenergy
production initiatives; creating the reinvest in Minnesota clean energy program;
providing for enforcement; authorizing a technical committee; appropriating
money; proposing coding for new law in Minnesota Statutes, chapters 17; 41A;
103F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [17.118] CLEAN ENERGY CAPITAL EQUIPMENT LOANS.
new text end

new text begin (a) There is established a clean energy revolving loan fund that is eligible to receive
appropriations and make loans under this section. The commissioner shall establish a
clean energy loan program to make loans for capital equipment to persons participating
in the reinvest in Minnesota clean energy program under section 103F.518 and other
persons using native, perennial cropping systems for energy or seed production. The
commissioner, in consultation with the technical committee established under section
103F.518, subdivision 11, shall establish guidelines for loans made under this section. All
repayments of loans granted from this fund, including principal and interest, must be
deposited into this fund. Interest earned on money in the fund accrues to the fund, and
the money in the fund is appropriated to the commissioner to make clean energy capital
equipment loans under this section.
new text end

new text begin (b) The definitions in section 41A.10, subdivision 2, apply to this section.
new text end

Sec. 2.

new text begin [41A.10] CELLULOSIC BIOFUEL DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required
by this section is annually appropriated from the general fund to the commissioner of
agriculture and all money so appropriated is available until expended.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section and sections 17.118, 41A.11,
and 103F.518, the terms defined in this subdivision have the meanings given them.
new text end

new text begin (a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
new text end

new text begin (b) "Cellulosic material" means an agricultural feedstock primarily comprised
of cellulose, hemicellulose, or lignin or a combination of those ingredients grown on
agricultural lands.
new text end

new text begin (c) "Agricultural land" means land used for horticultural, row, close grown, pasture,
and hayland crops; growing nursery stocks; animal feedlots; farm yards; associated
building sites; and public and private drainage systems and field roads located on any of
that land.
new text end

new text begin (d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is
produced.
new text end

new text begin (e) "Perennial crops" means agriculturally produced plants that have a life cycle of at
least three years at the location where the plants are being cultivated.
new text end

new text begin (f) "Perennial cropping system" means an agricultural production system that
utilizes a perennial crop.
new text end

new text begin (g) "Native species" means a plant species which was present in a defined area of
Minnesota prior to European settlement (circa 1850). A defined area may be an ecological
classification province. Wild-type varieties therefore are regional or local ecotypes that
have not undergone a selection process.
new text end

new text begin (h) "Diverse native prairie" means a prairie planted from a mix of nongenetically
modified local Minnesota native prairie species consisting of at least two legumes, two
cool season grasses, four warm season grasses, and eight nonleguminous forbs. A
selection from all available native prairie species may be made so as to match species
appropriate to local site conditions. Local species seed may be obtained alone or in
prepared seed mixes from any source within a 100-mile radius of the planting site.
new text end

new text begin (i) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (j) "Eligible biofuel producer" means a cellulosic biofuel facility that is at least 51
percent owned by farmers, as defined in section 500.24, subdivision 2, paragraph (n),
residing in the county where the cellulosic biofuel facility is located or in an adjoining
county, and an additional 24 percent of community ownership for any people residing in
the county or adjoining county.
new text end

new text begin Subd. 3. new text end

new text begin Cellulosic biofuel production goal. new text end

new text begin The state cellulosic biofuel production
goal is one-quarter of the total amount necessary for ethanol use required under section
239.791, subdivision 1a, by 2015 or when cellulosic biofuel facilities in the state attain a
total annual production level of 60,000,000 gallons, whichever is first.
new text end

new text begin Subd. 4. new text end

new text begin Cellulosic biofuel producer payments. new text end

new text begin (a) The commissioner shall
make cash payments to eligible producers of cellulosic biofuel located in the state that
have begun production at a specific location by June 30, 2012. For the purpose of this
subdivision, an entity that holds a controlling interest in more than one cellulosic biofuel
plant is considered a single eligible producer. The amount of the payment for each eligible
producer's annual production, except as provided in paragraph (d), is 15 cents per gallon
for each gallon of cellulosic biofuel produced at a specific location for five years after the
start of production. Cellulosic materials utilized in the production of cellulosic biofuel
must follow best available management practices or standards for their establishment,
growing, and harvesting. Cellulosic biofuel produced from corn stover or any row crop
must be grown according to management plans based on the University of Minnesota or
United States Department of Agriculture Natural Resource Conservation Service's best
practices for crop rotations, pests, and tillage that minimize soil erosion, contaminated
runoff, and leaching of nutrients.
new text end

new text begin (b) In lieu of the payment under paragraph (a), the commissioner shall make cash
payments to eligible producers of cellulosic biofuel located in the state that utilize
perennial, native cellulosic material grown that follow the standards derived under the
reinvest in Minnesota clean energy program, section 103F.518, subdivision 11, that
have begun production at a specific location by June 30, 2015. For the purpose of this
subdivision, an entity that holds a controlling interest in more than one cellulosic biofuel
facility is considered a single eligible producer. The amount of the payment for each
eligible biofuel producer's annual production, except as provided in paragraph (d), is
30 cents per gallon for each gallon of cellulosic biofuel produced at a specific location
for ten years after the start of production.
new text end

new text begin (c) No payments may be made for cellulosic biofuel production that occurs after
June 30, 2022, for those eligible biofuel producers under paragraph (a), and 2025 for
those eligible biofuel producers under paragraph (b). An eligible producer of cellulosic
biofuel shall not transfer the producer's eligibility for payments under this section to a
cellulosic biofuel facility at a different location.
new text end

new text begin (d) If the level of production at a cellulosic biofuel facility increases due to an
increase in the production capacity of the facility, the payment under paragraph (a) applies
to the additional increment of production until five years after the increased production
began and under paragraph (b) applies to the additional increment of production until ten
years after the increased production began. If capacity under paragraph (a) is converted
to payment under paragraph (b), the ten-year payment limit starts when the capacity
increased under paragraph (a). Once a facility's production capacity reaches 15,000,000
gallons per year, no additional increment will qualify for the payment.
new text end

new text begin (e) Payments under paragraphs (a) and (b) to all eligible biofuel producers may
not exceed $27,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to
an eligible biofuel producer in a fiscal year may not exceed the amount necessary for
15,000,000 gallons of biofuel production.
new text end

new text begin (f) An eligible biofuel producer may blend cellulosic feedstocks eligible under
paragraphs (a) and (b), but only the percentage of gallons that is attributable to feedstocks
under paragraph (a) receive 15 cents per gallon, and those under paragraph (b) receive
30 cents per gallon.
new text end

new text begin (g) By the last day of October, January, April, and July, each eligible biofuel producer
shall file a claim for payment for cellulosic biofuel production during the preceding three
calendar months. An eligible biofuel producer that files a claim under this subdivision shall
include a statement of the eligible biofuel producer's total cellulosic biofuel production in
Minnesota during the quarter covered by the claim. For each claim and statement of total
cellulosic biofuel production filed under this subdivision, the volume of cellulosic biofuel
production must be examined by an independent certified public accountant in accordance
with standards established by the American Institute of Certified Public Accountants.
new text end

new text begin (h) Payments must be made November 15, February 15, May 15, and August 15.
A separate payment must be made for each claim filed. The total quarterly payment
to an eligible producer under this paragraph may not exceed the amount necessary for
3,750,000 gallons of biofuel production.
new text end

new text begin (i) If an eligible biofuel producer becomes ineligible within five years after the last
payment has been received under paragraph (a), and ten years after the last payment
under paragraph (b), all payments received for biofuel production must be refunded to
the commissioner. Refunded payments received under this paragraph must be deposited
in the general fund.
new text end

new text begin (j) Annually, within 90 days of the end of its fiscal year, a cellulosic biofuel producer
receiving payments under this subdivision must file a disclosure statement on a form
provided by the commissioner. The initial disclosure statement must include a summary
description of the organization of the business structure of the claimant, a listing of the
percentages of ownership and governance by any person or other entity with an ownership
interest or governance rights of five percent or greater, and a copy of its annual audited
financial statements, including the auditor's report and footnotes. The disclosure statement
must include information demonstrating what percentage of the entity receiving payments
under this section is owned and governed by farmers or other entities that reside within the
county where the cellulosic biofuel facility is located. Subsequent annual reports must
reflect noncumulative changes in ownership of ten percent or more of the entity. The
report need not disclose the identity of the persons or entities, but the claimant must
retain information within its files confirming the accuracy of the data provided. This data
must be made available to the commissioner upon request. Not later than the 15th day
of February in each year, the commissioner shall deliver to the chairs of the standing
committees of the senate and the house of representatives that deal with agricultural
policy and agricultural finance an annual report summarizing aggregated and facility
data from plants receiving payments under this section during the preceding calendar
year. Audited financial statements and notes and disclosure statements submitted to the
commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the
provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited
financial reports and notes and disclosure statements must be contained in the report to the
committee chairs and will be public data.
new text end

new text begin (k) Bioenergy production for which payment has been received under section
41A.11 is not eligible for payment under this section.
new text end

Sec. 3.

new text begin [41A.11] BIOENERGY PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required
by this section is annually appropriated from the general fund to the commissioner of
agriculture and all money so appropriated is available until expended.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin The definitions in this subdivision and section 41A.10 apply
to this section.
new text end

new text begin (a) "Bioenergy production" means the generation of energy for commercial heat,
industrial process heat, or electrical power from a cellulosic material for a new or
expanded capacity facility or a facility that is displacing existing use of fossil fuel after
the effective date of this section.
new text end

new text begin (b) "Project area" means a geographically defined area in which reinvest in
Minnesota clean energy program easements are secured in order to provide a cellulosic
material supply to an identified facility producing bioenergy.
new text end

new text begin Subd. 3. new text end

new text begin Bioenergy producer payments. new text end

new text begin (a) The commissioner shall make
cash payments to eligible producers of bioenergy located in the state that have begun
production at a specific location by June 30, 2009. For the purpose of this subdivision,
an entity that holds a controlling interest in more than one bioenergy production plant is
considered a single eligible producer. The amount of the payment for each producer's
annual production, except as provided in paragraph (d), is $0.75 per 1,000,000 British
thermal units (Btu) of bioenergy production produced at a specific location for three
years after the start of production. Cellulosic materials utilized for bioenergy production
must follow best available management practices or standards for their establishment,
growing, and harvesting. Bioenergy produced from corn stover or any row crop must be
grown according to management plans based on the University of Minnesota or United
States Department of Agriculture Natural Resource Conservation Service's best practices
for crop rotations, pests, and tillage that minimize soil erosion, contaminates runoff,
and leaching of nutrients.
new text end

new text begin (b) The commissioner shall make cash payments to producers of bioenergy located
in the state that utilize perennial, native cellulosic material grown according to standards
derived under the reinvest in Minnesota clean energy program, section 103F.518,
subdivision 11, that have begun a practice at a specific location by June 30, 2015. For the
purpose of this subdivision, an entity that holds a controlling interest in more than one
bioenergy production plant is considered a single producer. The amount of the payment
for each producer's annual production, except as provided in paragraph (d), is $1.50 per
1,000,000 British thermal units (Btu) of bioenergy production produced at a specific
location for ten years after the start of production.
new text end

new text begin (c) No payments may be made for bioenergy production that occurs after June 30,
2012, for those eligible bioenergy producers under paragraph (a), and 2025 for those
eligible biofuel producers under paragraph (b). A producer of bioenergy production shall
not transfer the producer's eligibility for payments under this section to a bioenergy
production plant at a different location.
new text end

new text begin (d) If the level of production at a bioenergy production plant increases due to an
increase in the production capacity of the plant, the payment under paragraph (a) applies
to the additional increment of production until three years after the increased production
began, and under paragraph (b), ten years after the increased production began. If capacity
under paragraph (a) is converted to payment under paragraph (b), the ten-year payment
limit starts when the capacity increased under paragraph (a). Once a plant's bioenergy
production capacity reaches 1,500,000,000,000 Btu per year, no additional increment will
qualify for the payment under both paragraphs (a) and (b).
new text end

new text begin (e) Total payments under paragraphs (a) and (b) to all producers may not exceed
$11,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer in
a fiscal year may not exceed $2,250,000.
new text end

new text begin (f) An eligible facility may blend a cellulosic feedstock with other fuels in the
bioenergy production facility, but only the percentage attributable to cellulosic material
listed is eligible to receive the producer payment.
new text end

new text begin (g) An eligible bioenergy producer may blend the cellulosic materials eligible under
paragraphs (a) and (b), but only the percentage that is attributable to feedstocks under
paragraph (a) receive $0.75 per 1,000,000 Btu and those under paragraph (b) receive
$1.50 per 1,000,000 Btu.
new text end

new text begin (h) By the last day of October, January, April, and July, each producer shall file a
claim for payment for bioenergy production during the preceding three calendar months.
A producer that files a claim under this subdivision shall include a statement of the
producer's total bioenergy production in Minnesota during the quarter covered by the
claim. For each claim and statement of total bioenergy production filed under this
subdivision, the volume of bioenergy production must be examined by an independent
certified public accountant in accordance with standards established by the American
Institute of Certified Public Accountants.
new text end

new text begin (i) Payments must be made November 15, February 15, May 15, and August 15.
A separate payment must be made for each claim filed. The total quarterly payment to a
producer under this paragraph may not exceed $562,500.
new text end

new text begin (j) Biofuel production for which payment has been received under section 41A.10 is
not eligible for payment under this section.
new text end

Sec. 4.

new text begin [103F.518] REINVEST IN MINNESOTA CLEAN ENERGY PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of program. new text end

new text begin (a) The board, in consultation with
the technical committee established in subdivision 11, shall establish and administer a
reinvest in Minnesota clean energy program that is in addition to the program under
section 103F.515. The board may adopt rules to implement this section. Selection of land
for the clean energy program must be based on its potential benefits for bioenergy crop
production, water quality, soil health, reduction of chemical inputs, soil carbon storage,
biodiversity, and wildlife habitat.
new text end

new text begin (b) The definitions in sections 41A.10 and 41A.11 apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Eligible land. new text end

new text begin Eligible land under this section must:
new text end

new text begin (1) be owned by the landowner, or a parent or other blood relative of the landowner,
for at least one year before the date of application;
new text end

new text begin (2) be at least five acres in size;
new text end

new text begin (3) not be currently set aside, enrolled, or diverted under another federal or state
government program; and
new text end

new text begin (4) have been in agricultural use, as defined in section 17.81, subdivision 4, or have
been set aside, enrolled, or diverted under another federal or state program for at least two
of the last five years before the date of application.
new text end

new text begin Subd. 3. new text end

new text begin Designation of project areas. new text end

new text begin The board shall develop a process to
designate defined project areas. The designation process must prioritize projects that
include coordinated cooperation of a cellulosic biofuel facility or a bioenergy production
facility, target impaired waters, or support other state or local natural resource plans,
goals, or objectives.
new text end

new text begin Subd. 4. new text end

new text begin Easements. new text end

new text begin The board may acquire, or accept by gift or donation,
easements on eligible land. An easement may be permanent or of limited duration. An
easement of limited duration may not be acquired if it is for less than 20 years. The
negotiation and acquisition of easements authorized by this section are exempt from the
contractual provisions of chapters 16B and 16C.
new text end

new text begin Subd. 5. new text end

new text begin Nature of property rights acquired. new text end

new text begin (a) An easement must prohibit:
new text end

new text begin (1) agricultural crop production, unless approved by the board for energy production
purposes; and
new text end

new text begin (2) spraying with chemicals, except as necessary to comply with noxious weed
control laws, emergency pest control necessary to protect public health, or as needed
to establish a productive planting as determined by the technical committee under
subdivision 11.
new text end

new text begin (b) An easement is subject to the terms of the agreement provided in subdivision 6.
new text end

new text begin (c) Agricultural crop production and harvest are limited to native, perennial
bioenergy crops. Harvest must occur outside of bird nesting season.
new text end

new text begin (d) An easement must allow repairs, improvements, and inspections necessary to
maintain public drainage systems provided the easement area is restored to the condition
required by the terms of the easement.
new text end

new text begin (e) An easement may allow nonnative perennial prairie or pasture established by
September 1, 2007, that meet the objectives outlined in subdivision 7.
new text end

new text begin (f) An easement may allow grazing of livestock only if practiced under a plan,
approved by the board, that protects water quality, wildlife habitat, and biodiversity.
new text end

new text begin Subd. 6. new text end

new text begin Agreements by landowner. new text end

new text begin The board may enroll eligible land in the
reinvest in Minnesota clean energy program by signing an agreement in recordable form
with a landowner in which the landowner agrees:
new text end

new text begin (1) to convey to the state an easement that is not subject to any prior title, lien, or
encumbrance;
new text end

new text begin (2) to seed the land subject to the easement, as specified in the agreement, at
seeding rates determined by the board, or carry out other long-term capital improvements
approved by the board; and
new text end

new text begin (3) that the easement duration may be lengthened through mutual agreement with
the board.
new text end

new text begin Subd. 7. new text end

new text begin Payments for easements. new text end

new text begin The board must develop a tiered payment
system for easements partially based on the benefits of the bioenergy crop production for
water quality, soil health, reduction in chemical inputs, soil carbon storage, biodiversity,
and wildlife habitat using cash rent or a similar system as may be determined by the
board. The payment system must provide that the highest per-acre payment is for diverse
native prairie and perennials.
new text end

new text begin Subd. 8. new text end

new text begin Easement renewal. new text end

new text begin When an easement of limited duration expires,
a new easement and agreement for an additional period of at least 20 years may be
acquired by agreement of the board and the landowner under the terms of this section.
The board may adjust payment rates as a result of renewing an agreement and easement
only after examining the condition of the established plantings, conservation practices,
and land values.
new text end

new text begin Subd. 9. new text end

new text begin Correction of easement boundary lines. new text end

new text begin To correct errors in legal
descriptions for easements that affect the ownership interest in the state and adjacent
landowners, the board may, in the name of the state, with the approval of the attorney
general, convey, without consideration, interests of the state necessary to correct legal
descriptions of boundaries. The conveyance must be by quitclaim deed or release in
a form approved by the attorney general.
new text end

new text begin Subd. 10. new text end

new text begin Enforcement and damages. new text end

new text begin (a) A landowner who violates the term of
an easement or agreement under this section, or induces, assists, or allows another to do
so, is liable to the state for treble damages if the trespass is willful, but liable for double
damages only if the trespass is not willful. The amount of damages is the amount needed
to make the state whole or the amount the landowner has gained due to the violation,
whichever is greater.
new text end

new text begin (b) On request of the board, the attorney general may commence an action for
specific performance, injunctive relief, damages, including attorney fees, and any other
appropriate relief to enforce this section in district court in the county where all or part
of the violation is alleged to have been committed, or where the landowner resides or
has a principal place of business.
new text end

new text begin Subd. 11. new text end

new text begin Technical committee. new text end

new text begin To ensure that public benefits, including water
quality, soil health, reduction of chemical inputs, soil carbon storage, biodiversity, and
wildlife habitat are secured along with bioenergy crop production, the Board of Water and
Soil Resources shall appoint a technical committee consisting of one representative each
from the Departments of Agriculture, Natural Resources, Commerce, and the Pollution
Control Agency; two farm organizations; one sustainable agriculture farmer organization;
three rural economic development organizations; three environmental organizations;
and three conservation or wildlife organizations. The board and technical committee
shall consult with private sector organizations and University of Minnesota researchers
involved in biomass establishment and bioenergy or biofuel conversion. The technical
committee shall develop program guidelines, standards, and rules, as appropriate to
ensure that reinvest in Minnesota clean energy program contracts provide public benefits
commensurate with the public investment. The technical committee shall review and
make recommendations on the guidelines, standards, and rules every five years.
new text end

Sec. 5. new text begin APPROPRIATION; RIM CLEAN ENERGY PROGRAM STANDARDS.
new text end

new text begin $3,500,000 in fiscal year 2008 is appropriated from the general fund to the Board
of Water and Soil Resources to develop, in consultation with the technical committee
established under Minnesota Statutes, section 103F.518, subdivision 11, RIM clean energy
program guidelines, standards, and rules. This is a onetime appropriation and is available
until June 30, 2009.
new text end

Sec. 6. new text begin APPROPRIATION; RIM CLEAN ENERGY PROGRAM EASEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds; appropriation. new text end

new text begin $20,000,000 is appropriated from
the bond proceeds fund to the Board of Water and Soil Resources to acquire RIM clean
energy program easements under Minnesota Statutes, section 103F.518.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of finance shall sell and issue bonds of the state in
an amount up to $20,000,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution,
article XI, sections 4 to 7.
new text end

new text begin Subd. 3. new text end

new text begin General fund; appropriation. new text end

new text begin $500,000 in fiscal year 2008 and $500,000
in fiscal year 2009 are appropriated from the general fund to the Board of Water and
Soil Resources to be used for long-term inspection and protection of easements acquired
by the board.
new text end

Sec. 7. new text begin TRANSFER; CLEAN ENERGY CAPITAL EQUIPMENT REVOLVING
LOAN FUND.
new text end

new text begin By June 30, 2008, the commissioner of finance shall transfer $3,000,000 from the
general fund to the clean energy capital equipment revolving fund.
new text end

Sec. 8. new text begin APPROPRIATION; BIOENERGY CROP UTILIZATION
TECHNOLOGY PERMITTING.
new text end

new text begin $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to the Pollution Control Agency to permit new and emerging
bioenergy crop utilization technologies. This is a onetime appropriation.
new text end

Sec. 9. new text begin APPROPRIATION; BIOENERGY PRODUCTION AND UTILIZATION
TECHNICAL ASSISTANCE.
new text end

new text begin $600,000 in fiscal year 2008 is appropriated from the general fund to the Agricultural
Utilization Research Institute for technical assistance and technology transfer to bioenergy
crop producers and users. This appropriation is available until June 30, 2009.
new text end

Sec. 10. new text begin APPROPRIATION; BIOENERGY PRODUCTION RESEARCH AND
MONITORING.
new text end

new text begin $1,000,000 in fiscal year 2008 is appropriated from the general fund to the Board of
Water and Soil Resources to provide grants, in consultation with the technical committee
established under Minnesota Statutes, section 103F.518, subdivision 11, for bioenergy
crop research and monitoring including, but not limited to, water quality, water quantity
utilized, soil carbon storage, biological diversity, wildlife and habitat impacts and benefits,
and small diameter woody bioenergy. This appropriation is available until June 30, 2009.
new text end

Sec. 11. new text begin APPROPRIATION; BIOENERGY AGRONOMIC ECONOMIC AND
POLICY RESEARCH.
new text end

new text begin $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to the Minnesota Institute for Sustainable Agriculture at the
University of Minnesota to provide funds for on-station and on-farm field scale research
and outreach to develop and test the agronomic and economic requirements of diverse
stands of prairie plants and other perennials for bioenergy systems including, but not
limited to, multiple species selection and establishment, ecological management between
planting and harvest, harvest technologies, financial and agronomic risk management,
farmer goal setting and adoption of technologies, integration of wildlife habitat into
management approaches, evaluation of carbon and other benefits, and robust policies
needed to induce farmer conversion on marginal lands.
new text end

Sec. 12. new text begin APPROPRIATION; BUSINESS DEVELOPMENT ASSISTANCE
GRANTS.
new text end

new text begin $150,000 in fiscal year 2008 is appropriated from the general fund to the
commissioner of agriculture for grants to nongovernmental entities to assist in the
development of business plans and structures related to community ownership of eligible
cellulosic biofuel facilities under Minnesota Statutes, section 41A.10. This is a onetime
appropriation and is available until June 30, 2009.
new text end