1.1 	A bill for an act
1.2 	relating to agriculture; creating a soy-based transformer fluid conversion 
1.3 	allowance program; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1.  SOY-BASED TRANSFORMER FLUID CONVERSION ALLOWANCE 
1.6 	PROGRAM.
 1.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
1.8 	subdivision have the meanings given them.
1.9 	 (b) "Electric utility" means a public utility producing or furnishing electricity, 
1.10 	including, but not limited to, municipal utilities and cooperative electric associations, rural 
1.11 	or otherwise, organized under Minnesota Statutes, chapter 308A.
1.12 	(c) "Soy-based transformer fluid" means dielectric fluid that contains at least 98 
1.13 	percent soy-based products.
1.14 		Subd. 2.Establishment. The commissioner shall establish and implement a 
1.15 	soy-based transformer fluid conversion allowance program, issuing funds to help electric 
1.16 	utilities finance the replacement of non-soy-based transformer fluid with renewable, 
1.17 	soy-based transformer fluid.
1.18 		Subd. 3.Eligibility. An electric utility is eligible to receive a conversion allowance 
1.19 	to offset the cost of purchasing soy-based transformer fluid. Allowances are calculated at 
1.20 	a rate of $2 per gallon of soy-based transformer fluid used during the transition. The total 
1.21 	allowance awarded to any one electric utility may not exceed $80,000.  Eligible costs are 
1.22 	limited to those meeting all of the following requirements:
1.23 	(1) the costs were incurred after June 30, 2006, and before January 1, 2008;
2.1 	(2) the costs were incurred in the first 18 months of the transition from using 
2.2 	non-soy-based transformer fluid to using soy-based transformer fluid; and
2.3 	(3)  the costs are limited to the purchase of soy-based transformer fluid.
2.4 		Subd. 4.Awarding of conversion allowances. Applications for conversion 
2.5 	allowances must be made to the commissioner on forms prescribed by the commissioner. 
2.6 	Applicants must furnish a signed, dated copy of purchase agreements or other agreements 
2.7 	to purchase soy-based transformer fluid. The commissioner shall review all applications 
2.8 	and award conversion allowances to electric utilities for eligible costs, subject to the 
2.9 	restrictions in subdivision 3. Applications shall be reviewed and allowances awarded in 
2.10 	the order received by the commissioner. Ineligible applicants shall be notified in writing.
2.11 		Subd. 5. Expiration.  This section expires January 1, 2009. 

2.12 	Sec. 2. APPROPRIATION.
 2.13 	$....... is appropriated from the general fund to the commissioner of agriculture for 
2.14 	the program and is available until expended.