1.1 	A bill for an act
1.2 	relating to appropriations; appropriating money for a lignocellulosic ethanol 
1.3 	production grant.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. LIGNOCELLULOSIC ETHANOL PRODUCTION GRANT; 
1.6 	APPROPRIATION.
 1.7 	$....... is appropriated in fiscal year 2008 from the general fund to the commissioner 
1.8 	of agriculture for a competitive grant to a biofuel producer for the design and construction 
1.9 	of a new plant or the conversion of an existing plant in Minnesota that produces ethanol 
1.10 	from lignocellulosic feedstocks. The commissioner of agriculture shall solicit proposals 
1.11 	for demonstration projects. The proposals shall be reviewed and the winning proposal 
1.12 	chosen by the NextGen Energy Board established by the 85th Legislative Session House 
1.13 	File 2227, the third engrossment. Eligible lignocellulosic feedstocks include dedicated 
1.14 	energy crops and trees, wood and wood residues, plants, grasses, agricultural residues, 
1.15 	fibers, animal wastes and other waste materials, and municipal solid waste. The NextGen 
1.16 	Energy Board shall select a proposal that: (1) demonstrates sufficient funding from all 
1.17 	sources to fully construct or retrofit an ethanol plant and produce ethanol from eligible 
1.18 	lignocellulosic feedstocks; (2) demonstrates the continued economic viability of the 
1.19 	project once the initial construction costs are paid; and (3) proposes to construct or retrofit 
1.20 	an ethanol plant that can be easily replicated in Minnesota. Proposals solely to replace 
1.21 	energy inputs derived from fossil fuels with energy derived from lignocellulosic sources 
1.22 	are not eligible. This appropriation is available until expended.