HF 3552

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; adding a member to the NextGen Energy Board; removing
a sunset date; modifying an appropriation; amending Minnesota Statutes 2007
Supplement, section 41A.105; Laws 2007, chapter 45, article 1, section 3,
subdivision 4.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 41A.105, is amended to read:

41A.105 NEXTGEN ENERGY.

Subdivision 1.

Purpose.

It is the goal of the state through the Department of
Agriculture to research and develop energy sources to displace fossil fuels with renewable
technology.

Subd. 2.

NextGen Energy Board.

There is created a NextGen Energy Board
consisting of the commissioners of agriculture, commerce, natural resources, the Pollution
Control Agency, and employment and economic development; the chairs of the house and
senate committees with jurisdiction over energy finance; the chairs of the house and senate
committees with jurisdiction over agriculture finance; one member of the second largest
political party in the house, as appointed by the chairs of the house committees with
jurisdiction over agriculture finance and energy finance; one member of the second largest
political party in the senate, as appointed by the chairs of the senate committees with
jurisdiction over agriculture finance and energy finance; and the executive director of the
Agricultural Utilization Research Institute. In addition, the governor shall appoint deleted text begin seven deleted text end new text begin
eight new text end members: two representing statewide agriculture organizations; two representing
statewide environment and natural resource conservation organizations; one representing
the University of Minnesota; one representing the Minnesota Institute for Sustainable
Agriculture; deleted text begin and deleted text end one representing the Minnesota State Colleges and Universities system new text begin ;
and one representing the forest products industry new text end .

Subd. 3.

Duties.

The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest its
resources to most efficiently achieve energy independence, agricultural and natural
resources sustainability, and rural economic vitality. The board shall:

(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, biodiesel, and ethanol within Minnesota;

(2) develop equity grant programs to assist locally owned facilities;

(3) study the proper role of the state in creating financing and investing and
providing incentives;

(4) evaluate how state and federal programs, including the Farm Bill, can best work
together and leverage resources;

(5) work with other entities and committees to develop a clean energy program; and

(6) report to the legislature before February 1 each year with recommendations as
to appropriations and results of past actions and projects.

Subd. 4.

Commissioner's duties.

The commissioner of agriculture shall administer
this section.

deleted text begin Subd. 5. deleted text end

deleted text begin Expiration. deleted text end

deleted text begin This section expires June 30, 2009.
deleted text end

Sec. 2.

Laws 2007, chapter 45, article 1, section 3, subdivision 4, is amended to read:

Subd. 4. Bioenergy and Value-Added Agricultural Products

19,918,000

15,168,000

$15,168,000 the first year and $15,168,000
the second year are for ethanol producer
payments under Minnesota Statutes, section
41A.09. If the total amount for which all
producers are eligible in a quarter exceeds
the amount available for payments, the
commissioner shall make payments on a
pro rata basis. If the appropriation exceeds
the total amount for which all producers
are eligible in a fiscal year for scheduled
payments and for deficiencies in payments
during previous fiscal years, the balance
in the appropriation is available to the
commissioner for value-added agricultural
programs including the value-added
agricultural product processing and
marketing grant program under Minnesota
Statutes, section 17.101, subdivision 5. The
appropriation remains available until spent.

$3,000,000 the first year is for grants to
bioenergy projects. The NextGen Energy
Board shall make recommendations to
the commissioner on grants for owners of
Minnesota facilities producing bioenergy,
organizations that provide for on-station,
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, or certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic material via gasification
or other processes. The board must give
priority to a bioenergy facility that is at
least 60 percent owned and controlled by
farmers, as defined in Minnesota Statutes,
section 500.24, subdivision 2, paragraph
(n), or natural persons residing in the
county or counties contiguous to where the
facility is located. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for the
development of business plans and structures
related to community ownership of eligible
bioenergy facilities together may not exceed
$150,000. The board shall make a good
faith effort to select projects that have
merit and when taken together represent a
variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
certification on the technology and fuel
source. Grantees shall provide reports at
the request of the commissioner and must
actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable. No later than February
1, 2009, the commissioner shall report on
the projects funded under this appropriation
to the house and senate committees with
jurisdiction over agriculture finance. The
commissioner's costs in administering the
program may be paid from the appropriation.
new text begin Any unencumbered balance does not cancel
at the end of the first year and is available in
the second year.
new text end

$350,000 the first year is for grants 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. * (The preceding text
beginning "$350,000 the first year" was
indicated as vetoed by the governor.)

$200,000 the first year is for a grant to the
Minnesota Turf Seed Council for basic
and applied agronomic research on native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic
or applied research. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable and no later than
February 1, 2009, must report to the house
and senate committees with jurisdiction
over agriculture finance. This is a onetime
appropriation and is available until spent.

$200,000 the first year is for a grant to a joint
venture combined heat and power energy
facility located in Scott or LeSueur County
for the creation of a centrally located biomass
fuel supply depot with the capability of
unloading, processing, testing, scaling, and
storing renewable biomass fuels. The grant
must be matched by at least $3 of nonstate
funds for every $1 of state funds. The grant
recipient must actively participate in the
Agricultural Utilization Research Institute's
Renewable Energy Roundtable and no
later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.

$300,000 the first year is for a grant to the
Bois Forte Band of Chippewa for a feasibility
study of a renewable energy biofuels
demonstration facility on the Bois Forte
Reservation in St. Louis and Koochiching
Counties. The grant shall be used by the Bois
Forte Band to conduct a detailed feasibility
study of the economic and technical viability
of developing a multistream renewable
energy biofuels demonstration facility
on Bois Forte Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy. The grant recipient must actively
participate in the Agricultural Utilization
Research Institute's Renewable Energy
Roundtable and no later than February 1,
2009, must report to the house and senate
committees with jurisdiction over agriculture
finance. This is a onetime appropriation and
is available until spent.

$300,000 the first year is for a grant to
the White Earth Band of Chippewa for a
feasibility study of a renewable energy
biofuels production, research, and production
facility on the White Earth Reservation in
Mahnomen County. The grant must be used
by the White Earth Band and the University
of Minnesota to conduct a detailed feasibility
study of the economic and technical viability
of (1) developing a multistream renewable
energy biofuels demonstration facility on
White Earth Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy, and (2) developing, harvesting,
and marketing native prairie plants and seeds
for bioenergy production. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable and no later than
February 1, 2009, must report to the house
and senate committees with jurisdiction
over agriculture finance. This is a onetime
appropriation and is available until spent.

$200,000 the first year is for a grant to the Elk
River Economic Development Authority for
upfront engineering and a feasibility study
of the Elk River renewable fuels facility.
The facility must use a plasma gasification
process to convert primarily cellulosic
material, but may also use plastics and other
components from municipal solid waste, as
feedstock for the production of methanol
for use in biodiesel production facilities.
Any unencumbered balance in fiscal year
2008 does not cancel but is available for
fiscal year 2009. Notwithstanding Minnesota
Statutes, section 16A.285, the agency must
not transfer this appropriation. The grant
recipient must actively participate in the
Agricultural Utilization Research Institute's
Renewable Energy Roundtable and no
later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.

$200,000 the first year is for a grant to
Chisago County to conduct a detailed
feasibility study of the economic and
technical viability of developing a
multistream renewable energy biofuels
demonstration facility in Chisago, Isanti,
or Pine County to utilize existing forest
resources, woody biomass, and cellulosic
material to produce biofuels or bioenergy.
Chisago County may expend funds to Isanti
and Pine Counties and the University of
Minnesota for any costs incurred as part
of the study. The feasibility study must
consider the capacity of: (1) the seed bank
at Wild River State Park to expand the
existing prairie grass, woody biomass, and
cellulosic material resources in Chisago,
Isanti, and Pine Counties; (2) willing and
interested landowners in Chisago, Isanti, and
Pine Counties to grow cellulosic materials;
and (3) the Minnesota Conservation Corps,
the sentence to serve program, and other
existing workforce programs in east central
Minnesota to contribute labor to these efforts.
The grant recipient must actively participate
in the Agricultural Utilization Research
Institute's Renewable Energy Roundtable and
no later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end