1.1                          A bill for an act 
  1.2             relating to agriculture; changing provisions of the 
  1.3             biodiesel content mandate; amending Minnesota Statutes 
  1.4             2002, sections 239.77, subdivision 1, by adding a 
  1.5             subdivision; 239.771. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 239.77, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [BIODIESEL FUEL DEFINITIONS.] (a) The 
  1.10  definitions in this subdivision apply to this section and 
  1.11  section 239.771. 
  1.12     (b) "Biodiesel fuel" means a renewable, biodegradable, mono 
  1.13  alkyl ester combustible liquid fuel derived from agricultural 
  1.14  plant oils or animal fats and that meets American Society For 
  1.15  Testing and Materials Specification D6751-02 for Biodiesel Fuel 
  1.16  (B100) Blend Stock for Distillate Fuels. 
  1.17     (c) "Terminal" means one of the following that is 
  1.18  registered as a qualified terminal with the Internal Revenue 
  1.19  Service: 
  1.20     (1) a motor fuel storage and distribution facility located 
  1.21  in Minnesota that is supplied by pipeline or marine vessel; or 
  1.22     (2) a refinery rack located in Minnesota.  
  1.23     Sec. 2.  Minnesota Statutes 2002, section 239.77, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 2a.  [IN-STATE TERMINAL REQUIREMENT.] All diesel fuel 
  2.1   distributed from terminals in Minnesota that is required under 
  2.2   subdivision 2 to contain biodiesel fuel oil must be blended with 
  2.3   the biodiesel at the terminal.  
  2.4      Sec. 3.  Minnesota Statutes 2002, section 239.771, is 
  2.5   amended to read: 
  2.6      239.771 [DISTRIBUTOR EXPENSE REIMBURSEMENT.] 
  2.7      Subdivision 1.  [ELIGIBILITY.] A distributor terminal that 
  2.8   made capital expenditures necessary to adapt or add equipment to 
  2.9   blend biodiesel fuel oil under the mandate in section 239.77 may 
  2.10  be is eligible for partial reimbursement for those expenditures 
  2.11  unrecovered capital expenditures if the mandate is repealed 
  2.12  within eight years of the date the mandate is effective. 
  2.13     Subd. 2.  [APPLICATION; ELIGIBILITY.] (a) A distributor 
  2.14  terminal operator may apply to the commissioner of agriculture 
  2.15  for a reimbursement from money appropriated for this purpose on 
  2.16  the following schedule:  If the mandate is repealed within two 
  2.17  years of its effective date, the commissioner shall reimburse up 
  2.18  to 80 percent of expenditures.  The total amount eligible to be 
  2.19  reimbursed must decline by ten percent each year after the 
  2.20  mandate is effective and must end at 20 percent in the eighth 
  2.21  year. 
  2.22     (b) The commissioner must require detailed proof of 
  2.23  expenditures made solely to comply with the mandate.