1.1                          A bill for an act 
  1.2             relating to agriculture; providing for a biodiesel 
  1.3             fuel mandate; proposing coding for new law in 
  1.4             Minnesota Statutes, chapter 239. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [239.77] [BIODIESEL CONTENT MANDATE.] 
  1.7      Subdivision 1.  [BIODIESEL FUEL.] "Biodiesel fuel" means a 
  1.8   renewable, biodegradable, mono alkyl ester combustible liquid 
  1.9   fuel derived from agricultural plant oils or animal fats and 
  1.10  that meets American Society For Testing and Materials 
  1.11  Specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for 
  1.12  Distillate Fuels. 
  1.13     Subd. 2.  [MINIMUM CONTENT; EFFECTIVE DATE.] (a) Except as 
  1.14  otherwise provided in this section, all diesel fuel sold or 
  1.15  offered for sale in Minnesota for use in internal combustion 
  1.16  engines must contain at least 2.0 percent biodiesel fuel oil by 
  1.17  volume. 
  1.18     (b) The mandate in paragraph (a) is effective on and after 
  1.19  the date that the conditions in clauses (1) and (2), or in 
  1.20  clauses (1) and (3), have been met: 
  1.21     (1) thirty or more days have passed since the commissioner 
  1.22  of agriculture publishes notice in the State Register that 
  1.23  annual capacity in Minnesota for the production of biodiesel 
  1.24  fuel oil exceeds 8,000,000 gallons; 
  1.25     (2) eighteen months have passed since the commissioner of 
  2.1   agriculture publishes notice in the State Register that a 
  2.2   federal action on taxes imposed, tax credits, or otherwise, 
  2.3   creates a reduction in the price of two cents or more per gallon 
  2.4   on taxable fuel that contains at least two percent biodiesel 
  2.5   fuel oil and is sold in this state; 
  2.6      (3) the date June 30, 2005, has passed. 
  2.7      Subd. 3.  [EXCEPTIONS.] (a) The minimum content requirement 
  2.8   of subdivision 2 does not apply to fuel used in the following 
  2.9   equipment: 
  2.10     (1) motors located at an electric generating plant 
  2.11  regulated by the Nuclear Regulatory Commission; 
  2.12     (2) railroad locomotives; and 
  2.13     (3) off-road taconite and copper mining equipment and 
  2.14  machinery. 
  2.15     (b) The exemption in paragraph (a), clause (1), expires 30 
  2.16  days after the Nuclear Regulatory Commission has approved the 
  2.17  use of biodiesel fuel in motors at electric generating plants 
  2.18  under its regulation. 
  2.19     Sec. 2.  [239.771] [DISTRIBUTOR EXPENSE REIMBURSEMENT.] 
  2.20     Subdivision 1.  [ELIGIBILITY.] A distributor that made 
  2.21  capital expenditures necessary to adapt or add equipment to 
  2.22  blend biodiesel fuel oil under the mandate in section 239.77 may 
  2.23  be eligible for partial reimbursement for those expenditures if 
  2.24  the mandate is repealed within eight years of the date the 
  2.25  mandate is effective. 
  2.26     Subd. 2.  [APPLICATION; ELIGIBILITY.] (a) A distributor may 
  2.27  apply to the commissioner of agriculture for a reimbursement 
  2.28  from money appropriated for this purpose on the following 
  2.29  schedule:  If the mandate is repealed within two years of its 
  2.30  effective date, the commissioner shall reimburse up to 80 
  2.31  percent of expenditures.  The total amount eligible to be 
  2.32  reimbursed must decline by ten percent each year after the 
  2.33  mandate is effective and must end at 20 percent in the eighth 
  2.34  year. 
  2.35     (b) The commissioner must require detailed proof of 
  2.36  expenditures made solely to comply with the mandate.