1.1 	A bill for an act
1.2 	relating to agriculture; making policy, technical, conforming, and clarifying 
1.3 	changes to provisions related to agricultural law; modifying provisions related 
1.4 	to pesticide control, agricultural resource loan and ethanol development, the 
1.5 	Rural Finance Authority, grain buyers, and other agriculture-related provisions; 
1.6 	modifying provisions related to biofuel; directing the NextGen Energy Board to 
1.7 	examine biobased chemical production from agricultural and forestry feedstocks; 
1.8 	modifying noxious weed law; modifying definition of E85; amending Minnesota 
1.9 	Statutes 2012, sections 17.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 
1.10 	18.78, subdivision 3; 18.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, 
1.11 	subdivisions 1, 2; 18B.01, by adding a subdivision; 18B.065, subdivision 2a; 
1.12 	18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3; 18B.316, subdivisions 1, 
1.13 	3, 4, 8, 9; 18B.37, subdivision 4; 31.94; 41A.10, subdivision 2, by adding a 
1.14 	subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, by adding a subdivision; 
1.15 	41B.04, subdivision 9; 116J.437, subdivision 1; 223.17, by adding a subdivision; 
1.16 	232.22, by adding a subdivision; 239.051, by adding subdivisions; 239.791, 
1.17 	subdivisions 1, 2a, 2b; 239.7911; 296A.01, subdivision 19, by adding a 
1.18 	subdivision; proposing coding for new law in Minnesota Statutes, chapter 18; 
1.19 	repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07, 
1.20 	subdivision 6; 239.791, subdivision 1a.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	POLICY AND TECHNICAL CHANGES

1.24 	Section 1. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
1.25 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
1.26 	subdivision have the meanings given them.
1.27 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
1.28 	cervidae, ratitae, bison, sheep, horses, and llamas.
1.29 	(c) "Qualifying expenditures" means the amount spent for:
2.1 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
2.2 	production of livestock or livestock products;
2.3 	(2) the development of pasture for use by livestock including, but not limited to, the 
2.4 	acquisition, development, or improvement of:
2.5 	(i) lanes used by livestock that connect pastures to a central location;
2.6 	(ii) watering systems for livestock on pasture including water lines, booster pumps, 
2.7 	and well installations;
2.8 	(iii) livestock stream crossing stabilization; and
2.9 	(iv) fences; or
2.10 	(3) the acquisition of equipment for livestock housing, confinement, feeding, and 
2.11 	waste management including, but not limited to, the following:
2.12 	(i) freestall barns;
2.13 	(ii) watering facilities;
2.14 	(iii) feed storage and handling equipment;
2.15 	(iv) milking parlors;
2.16 	(v) robotic equipment;
2.17 	(vi) scales;
2.18 	(vii) milk storage and cooling facilities;
2.19 	(viii) bulk tanks;
2.20 	(ix) computer hardware and software and associated equipment used to monitor 
2.21 	the productivity and feeding of livestock;
2.22 	(x) manure pumping and storage facilities;
2.23 	(xi) swine farrowing facilities;
2.24 	(xii) swine and cattle finishing barns;
2.25 	(xiii) calving facilities;
2.26 	(xiv) digesters;
2.27 	(xv) equipment used to produce energy;
2.28 	(xvi) on-farm processing facilities equipment;
2.29 	(xvii) fences; and
2.30 	(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
2.31 	Except for qualifying pasture development expenditures under clause (2), qualifying 
2.32 	expenditures only include amounts that are allowed to be capitalized and deducted under 
2.33 	either section 167 or 179 of the Internal Revenue Code in computing federal taxable 
2.34 	income. Qualifying expenditures do not include an amount paid to refinance existing debt.
2.35 	(d) "Qualifying period" means, for a grant awarded during a fiscal year, that full 
2.36 	calendar year of which the first six months precede the first day of the current fiscal year. For 
3.1 	example, an eligible person who makes qualifying expenditures during calendar year 2008 
3.2 	is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

3.3 	Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
3.4 	to read:
3.5 		Subd. 4a.Bulk pesticide storage facility. "Bulk pesticide storage facility" means a 
3.6 	facility that is required to have a permit under section 18B.14.

3.7 	Sec. 3. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
3.8 		Subd. 2a.Disposal site requirement. (a) For agricultural waste pesticides, the 
3.9 	commissioner must designate a place in each county of the state that is available at least 
3.10 	every other year for persons to dispose of unused portions of agricultural pesticides. The 
3.11 	commissioner shall consult with the person responsible for solid waste management 
3.12 	and disposal in each county to determine an appropriate location and to advertise each 
3.13 	collection event. The commissioner may provide a collection opportunity in a county 
3.14 	more frequently if the commissioner determines that a collection is warranted.
3.15 	(b) For nonagricultural waste pesticides, the commissioner must provide a disposal 
3.16 	opportunity each year in each county or enter into a contract with a group of counties 
3.17 	under a joint powers agreement or contract for household hazardous waste disposal.
3.18 	(c) As provided under subdivision 7, the commissioner may enter into cooperative 
3.19 	agreements with local units of government to provide the collections required under 
3.20 	paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative 
3.21 	agreement, with funding for reasonable costs incurred including, but not limited to, related 
3.22 	supplies, transportation, advertising, and disposal costs as well as reasonable overhead 
3.23 	costs.
3.24 	(d) A person who collects waste pesticide under this section shall, on a form 
3.25 	provided or in a method approved by the commissioner, record information on each 
3.26 	waste pesticide product collected including, but not limited to, the quantity collected 
3.27 	and either the product name and its active ingredient or ingredients or the United States 
3.28 	Environmental Protection Agency registration number. The person must submit this 
3.29 	information to the commissioner at least annually by January 30.
3.30 	(e) Notwithstanding the recording and reporting requirements of paragraph (d), 
3.31 	persons are not required to record or report agricultural or nonagricultural waste pesticide 
3.32 	collected in the remainder of 2013, 2014, and 2015. The commissioner shall analyze 
3.33 	existing collection data to identify trends that will inform future collection strategies to 
3.34 	better meet the needs and nature of current waste pesticide streams. By January 15, 2015, 
4.1 	the commissioner shall report analysis, recommendations, and proposed policy changes to 
4.2 	this program to legislative committees with jurisdiction over agriculture finance and policy.

4.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.4 	and applies to waste pesticide collected on or after that date through the end of 2015.

4.5 	Sec. 4. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
4.6 		Subd. 4.Pesticide storage safeguards at application sites. A person may not 
4.7 	allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in 
4.8 	or on any site without safeguards adequate to prevent an incident. Pesticides may not be 
4.9 	stored in any location with an open drain.

4.10 	Sec. 5. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
4.11 		Subd. 5.Use of public water supplies for filling application equipment. (a) A 
4.12 	person may not fill pesticide application equipment directly from a public water supply, 
4.13 	as defined in section 144.382, or from public waters, as defined in section 103G.005, 
4.14 	subdivision 15, unless the outlet from the public water supply is equipped with a backflow 
4.15 	prevention device that complies with and is installed in accordance with the Minnesota 
4.16 	Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280. A nurse tank not 
4.17 	connected to the water supply, an atmospheric vacuum breaker (AVB), and air gap that is 
4.18 	2.0 times the effective diameter of the outlet, a pressurized vacuum breaker (PVB), or 
4.19 	a reduced pressure principle backflow prevention device (RPZ) must also comply with 
4.20 	the requirements under the Minnesota Plumbing Code under Minnesota Rules, parts 
4.21 	4715.2000 to 4715.2280.
4.22 	(b) Cross connections between a water supply use for filling pesticide application 
4.23 	equipment are prohibited.
4.24 	(c) This subdivision does not apply to permitted applications of aquatic pesticides to 
4.25 	public waters.

4.26 	Sec. 6. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
4.27 		Subd. 7.Cleaning equipment in or near surface water Pesticide handling 
4.28 	restrictions. (a) A person may not: fill or clean pesticide application equipment where 
4.29 	pesticides or materials contaminated with pesticides could enter ditches, surface water, 
4.30 	groundwater, wells, drains, or sewers. For wells, the setbacks established in Minnesota 
4.31 	Rules, part 4725.4450, apply.
4.32 	(1) clean pesticide application equipment in surface waters of the state; or
5.1 	(2) fill or clean pesticide application equipment adjacent to surface waters, 
5.2 	ditches, or wells where, because of the slope or other conditions, pesticides or materials 
5.3 	contaminated with pesticides could enter or contaminate the surface waters, groundwater, 
5.4 	or wells, as a result of overflow, leakage, or other causes.
5.5 	(b) This subdivision does not apply to permitted application of aquatic pesticides to 
5.6 	public waters.

5.7 	Sec. 7. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
5.8 		Subd. 3.Registration application and gross sales fee. (a) For an agricultural 
5.9 	pesticide, a registrant shall pay an annual registration application fee for each agricultural 
5.10 	pesticide of $350. The fee is due by December 31 preceding the year for which the 
5.11 	application for registration is made. The fee is nonrefundable.
5.12 	(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual 
5.13 	registration application fee for each nonagricultural pesticide of $350. The fee is due by 
5.14 	December 31 preceding the year for which the application for registration is made. The 
5.15 	fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to 
5.16 	the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural 
5.17 	pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into 
5.18 	the state for use in this state. The commissioner may not assess a fee under this paragraph 
5.19 	if the amount due based on percent of annual gross sales is less than $10 No fee is required 
5.20 	if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide 
5.21 	is less than $10. The registrant shall secure sufficient sales information of nonagricultural 
5.22 	pesticides distributed into this state from distributors and dealers, regardless of distributor 
5.23 	location, to make a determination. Sales of nonagricultural pesticides in this state and 
5.24 	sales of nonagricultural pesticides for use in this state by out-of-state distributors are not 
5.25 	exempt and must be included in the registrant's annual report, as required under paragraph 
5.26 	(g), and fees shall be paid by the registrant based upon those reported sales. Sales of 
5.27 	nonagricultural pesticides in the state for use outside of the state are exempt from the 
5.28 	gross sales fee in this paragraph if the registrant properly documents the sale location and 
5.29 	distributors. A registrant paying more than the minimum fee shall pay the balance due by 
5.30 	March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the 
5.31 	preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or 
5.32 	disinfectant is exempt from the gross sales fee.
5.33 	(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed 
5.34 	pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the 
6.1 	agricultural pesticide in the state and the annual gross sales of the agricultural pesticide 
6.2 	sold into the state for use in this state.
6.3 	(d) In those cases where a registrant first sells an agricultural pesticide in or into the 
6.4 	state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer 
6.5 	license and is responsible for payment of the annual gross sales fee under paragraph (c), 
6.6 	record keeping under paragraph (i), and all other requirements of section 18B.316.
6.7 	(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, 
6.8 	by the commissioner on the registration and sale of pesticides is less than $6,600,000, the 
6.9 	commissioner, after a public hearing, may increase proportionally the pesticide sales and 
6.10 	product registration fees under this chapter by the amount necessary to ensure this level 
6.11 	of revenue is achieved. The authority under this section expires on June 30, 2014. The 
6.12 	commissioner shall report any fee increases under this paragraph 60 days before the fee 
6.13 	change is effective to the senate and house of representatives agriculture budget divisions.
6.14 	(f) An additional fee of 50 percent of the registration application fee must be paid by 
6.15 	the applicant for each pesticide to be registered if the application is a renewal application 
6.16 	that is submitted after December 31.
6.17 	(g) A registrant must annually report to the commissioner the amount, type and 
6.18 	annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or 
6.19 	otherwise distributed in the state. The report shall be filed by March 1 for the previous 
6.20 	year's registration. The commissioner shall specify the form of the report or approve 
6.21 	the method for submittal of the report and may require additional information deemed 
6.22 	necessary to determine the amount and type of nonagricultural pesticide annually 
6.23 	distributed in the state. The information required shall include the brand name, United 
6.24 	States Environmental Protection Agency registration number, and amount of each 
6.25 	nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but 
6.26 	the information collected, if made public, shall be reported in a manner which does not 
6.27 	identify a specific brand name in the report.
6.28 	(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually 
6.29 	report to the commissioner the amount, type, and annual gross sales of each registered 
6.30 	agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the 
6.31 	state for use in the state. The report must be filed by January 31 for the previous year's 
6.32 	sales. The commissioner shall specify the form, contents, and approved electronic method 
6.33 	for submittal of the report and may require additional information deemed necessary to 
6.34 	determine the amount and type of agricultural pesticide annually distributed within the 
6.35 	state or into the state. The information required must include the brand name, United States 
7.1 	Environmental Protection Agency registration number, and amount of each agricultural 
7.2 	pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
7.3 	(i) A person who registers a pesticide with the commissioner under paragraph (b), 
7.4 	or a registrant under paragraph (d), shall keep accurate records for five years detailing 
7.5 	all distribution or sales transactions into the state or in the state and subject to a fee and 
7.6 	surcharge under this section.
7.7 	(j) The records are subject to inspection, copying, and audit by the commissioner 
7.8 	and must clearly demonstrate proof of payment of all applicable fees and surcharges 
7.9 	for each registered pesticide product sold for use in this state. A person who is located 
7.10 	outside of this state must maintain and make available records required by this subdivision 
7.11 	in this state or pay all costs incurred by the commissioner in the inspecting, copying, or 
7.12 	auditing of the records.
7.13 	(k) The commissioner may adopt by rule regulations that require persons subject 
7.14 	to audit under this section to provide information determined by the commissioner to be 
7.15 	necessary to enable the commissioner to perform the audit.
7.16 	(l) A registrant who is required to pay more than the minimum fee for any pesticide 
7.17 	under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee 
7.18 	paid after March 1 in the year for which the license is to be issued.

7.19 	Sec. 8. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
7.20 		Subdivision 1.Requirement. (a) A person must not distribute offer for sale or sell 
7.21 	an agricultural pesticide in the state or into the state without first obtaining an agricultural 
7.22 	pesticide dealer license.
7.23 	(b) Each location or place of business from which an agricultural pesticide is 
7.24 	distributed offered for sale or sold in the state or into the state is required to have a 
7.25 	separate agricultural pesticide dealer license.
7.26 	(c) A person who is a licensed pesticide dealer under section 18B.31 is not required 
7.27 	to also be licensed under this subdivision.

7.28 	Sec. 9. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
7.29 		Subd. 3.Resident agent. A person required to be licensed under subdivisions 1 
7.30 	and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who 
7.31 	operates from a location or place of business outside the state and who distributes offers 
7.32 	for sale or sells an agricultural pesticide into the state, must continuously maintain in 
7.33 	this state the following:
7.34 	(1) a registered office; and
8.1 	(2) a registered agent, who may be either a resident of this state whose business 
8.2 	office or residence is identical with the registered office under clause (1), a domestic 
8.3 	corporation or limited liability company, or a foreign corporation of limited liability 
8.4 	company authorized to transact business in this state and having a business office identical 
8.5 	with the registered office.
8.6 	A person licensed under this section or section 18B.31 shall annually file with the 
8.7 	commissioner, either at the time of initial licensing or as part of license renewal, the name, 
8.8 	address, telephone number, and e-mail address of the licensee's registered agent.
8.9 	For licensees under section 18B.31 who are located in the state, the licensee is 
8.10 	the registered agent.

8.11 	Sec. 10. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
8.12 		Subd. 4.Responsibility. The resident agent is responsible for the acts of a licensed 
8.13 	agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who 
8.14 	operates from a location or place of business outside the state and who distributes offers 
8.15 	for sale or sells an agricultural pesticide into the state, as well as the acts of the employees 
8.16 	of those licensees.

8.17 	Sec. 11. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
8.18 		Subd. 8.Report of sales and payment to commissioner. A person who is an 
8.19 	agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who 
8.20 	distributes offers for sale or sells an agricultural pesticide in or into the state, and a 
8.21 	pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no 
8.22 	later than January 31 of each year report and pay applicable fees on annual gross sales 
8.23 	of agricultural pesticides to the commissioner pursuant to requirements under section 
8.24 	18B.26, subdivision 3, paragraphs (c) and (h).

8.25 	Sec. 12. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
8.26 		Subd. 9.Application. (a) A person must apply to the commissioner for an 
8.27 	agricultural pesticide dealer license on forms and in a manner approved by the 
8.28 	commissioner.
8.29 	(b) The applicant must be the person in charge of each location or place of business 
8.30 	from which agricultural pesticides are distributed offered for sale or sold in or into the state.
8.31 	(c) The commissioner may require that the applicant provide information regarding 
8.32 	the applicant's proposed operations and other information considered pertinent by the 
8.33 	commissioner.
9.1 	(d) The commissioner may require additional demonstration of licensee qualification 
9.2 	if the licensee has had a license suspended or revoked, or has otherwise had a history of 
9.3 	violations in another state or violations of this chapter.
9.4 	(e) A licensed agricultural pesticide dealer who changes the dealer's address or place 
9.5 	of business must immediately notify the commissioner of the change.
9.6 	(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide 
9.7 	dealer license is complete only when a report and any applicable payment of fees under 
9.8 	subdivision 8 are received by the commissioner.

9.9 	Sec. 13. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
9.10 		Subd. 4.Storage, handling, Incident response, and disposal plan. A pesticide 
9.11 	dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest 
9.12 	control applicator or the business that the applicator is employed by business must develop 
9.13 	and maintain a an incident response plan that describes its pesticide storage, handling, 
9.14 	incident response, and disposal practices the actions that will be taken to prevent and 
9.15 	respond to pesticide incidents. The plan must contain the same information as forms 
9.16 	provided by the commissioner. The plan must be kept at a principal business site or location 
9.17 	within this state and must be submitted to the commissioner upon request on forms provided 
9.18 	by the commissioner. The plan must be available for inspection by the commissioner.

9.19 	Sec. 14. Minnesota Statutes 2012, section 31.94, is amended to read:
9.20 	31.94 COMMISSIONER DUTIES.
9.21 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
9.22 	commissioner shall:
9.23 	(1) survey producers and support services and organizations to determine 
9.24 	information and research needs in the area of organic agriculture practices;
9.25 	(2) work with the University of Minnesota to demonstrate the on-farm applicability 
9.26 	of organic agriculture practices to conditions in this state;
9.27 	(3) direct the programs of the department so as to work toward the promotion of 
9.28 	organic agriculture in this state;
9.29 	(4) inform agencies of how state or federal programs could utilize and support 
9.30 	organic agriculture practices; and
9.31 	(5) work closely with producers, the University of Minnesota, the Minnesota Trade 
9.32 	Office, and other appropriate organizations to identify opportunities and needs as well 
9.33 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
9.34 	teaching, marketing, and extension work relating to organic agriculture.
10.1 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, 
10.2 	in conjunction with the task force created in paragraph (c), shall report on the status of 
10.3 	organic agriculture in Minnesota to the legislative policy and finance committees and 
10.4 	divisions with jurisdiction over agriculture. The report must include available data on 
10.5 	organic acreage and production, available data on the sales or market performance of 
10.6 	organic products, and recommendations regarding programs, policies, and research efforts 
10.7 	that will benefit Minnesota's organic agriculture sector.
10.8 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
10.9 	University of Minnesota on policies and programs that will improve organic agriculture in 
10.10 	Minnesota, including how available resources can most effectively be used for outreach, 
10.11 	education, research, and technical assistance that meet the needs of the organic agriculture 
10.12 	community. The task force must consist of the following residents of the state:
10.13 	(1) three organic farmers using organic agriculture methods;
10.14 	(2) one wholesaler or distributor of organic products;
10.15 	(3) one representative of organic certification agencies;
10.16 	(4) two organic processors;
10.17 	(5) one representative from University of Minnesota Extension;
10.18 	(6) one University of Minnesota faculty member;
10.19 	(7) one representative from a nonprofit organization representing producers;
10.20 	(8) two public members;
10.21 	(9) one representative from the United States Department of Agriculture;
10.22 	(10) one retailer of organic products; and
10.23 	(11) one organic consumer representative.
10.24 	The commissioner, in consultation with the director of the Minnesota Agricultural 
10.25 	Experiment Station; the dean and director of University of Minnesota Extension; and the 
10.26 	dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint 
10.27 	members to serve staggered two three-year terms.
10.28 	Compensation and removal of members are governed by section 15.059, subdivision 
10.29 	6. The task force must meet at least twice each year and expires on June 30, 2013 2016.
10.30 	(d) For the purposes of expanding, improving, and developing production and 
10.31 	marketing of the organic products of Minnesota agriculture, the commissioner may 
10.32 	receive funds from state and federal sources and spend them, including through grants or 
10.33 	contracts, to assist producers and processors to achieve certification, to conduct education 
10.34 	or marketing activities, to enter into research and development partnerships, or to address 
10.35 	production or marketing obstacles to the growth and well-being of the industry.
11.1 	(e) The commissioner may facilitate the registration of state organic production 
11.2 	and handling operations including those exempt from organic certification according to 
11.3 	Code of Federal Regulations, title 7, section 205.101, and certification agents operating 
11.4 	within the state.

11.5 	Sec. 15. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
11.6 		Subd. 1a.Definitions. For the purpose of this section:
11.7 	(1) "biobased content" means a chemical, polymer, monomer, or plastic that is not 
11.8 	sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 
11.9 	51 percent as determined by testing representative samples using American Society for 
11.10 	Testing and Materials specification D6866;
11.11 	(2) "biobased formulated product" means a product that is not sold primarily for use 
11.12 	as food, feed, or fuel and that has a biobased content percentage of at least ten percent 
11.13 	as determined by testing representative samples using American Society for Testing 
11.14 	and Materials specification D6866, or that contains a biobased chemical constituent 
11.15 	that displaces a known hazardous or toxic constituent previously used in the product 
11.16 	formulation;
11.17 	(1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
11.18 	(2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from 
11.19 	agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets; 
11.20 	forest products; or other renewable resources, including residue and waste generated 
11.21 	from the production, processing, and marketing of agricultural products, forest products, 
11.22 	and other renewable resources.

11.23 	Sec. 16. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
11.24 		Subd. 3.Duties. The board shall research and report to the commissioner of 
11.25 	agriculture and to the legislature recommendations as to how the state can invest its 
11.26 	resources to most efficiently achieve energy independence, agricultural and natural 
11.27 	resources sustainability, and rural economic vitality. The board shall:
11.28 	(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen, 
11.29 	methanol, biodiesel, and ethanol within Minnesota;
11.30 	(2) examine the opportunity for biobased content and biobased formulated product 
11.31 	production at integrated biorefineries or stand alone facilities using agricultural and 
11.32 	forestry feedstocks;
11.33 	(2) (3) develop equity grant programs to assist locally owned facilities;
12.1 	(3) (4) study the proper role of the state in creating financing and investing and 
12.2 	providing incentives;
12.3 	(4) (5) evaluate how state and federal programs, including the Farm Bill, can best 
12.4 	work together and leverage resources;
12.5 	(5) (6) work with other entities and committees to develop a clean energy program; 
12.6 	and
12.7 	(6) (7) report to the legislature before February 1 each year with recommendations 
12.8 	as to appropriations and results of past actions and projects.

12.9 	Sec. 17. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
12.10 		Subd. 5.Expiration. This section expires June 30, 2014 2015.

12.11 	Sec. 18. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision 
12.12 	to read:
12.13 		Subd. 3a.Grant awards. Grant projects may continue for up to three years. 
12.14 	Multiyear projects must be reevaluated by the commissioner before second- and third-year 
12.15 	funding is approved. A project is limited to one grant for its funding.

12.16 	Sec. 19. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
12.17 		Subd. 9.Restructured loan agreement. (a) For a deferred restructured loan, all 
12.18 	payments on the primary and secondary principal, all payments of interest on the secondary 
12.19 	principal, and an agreed portion of the interest payable to the eligible agricultural lender 
12.20 	on the primary principal must be deferred to the end of the term of the loan.
12.21 	(b) Interest on secondary principal must accrue at a below market interest rate.
12.22 	(c) At the conclusion of the term of the restructured loan, the borrower owes primary 
12.23 	principal, secondary principal, and deferred interest on primary and secondary principal. 
12.24 	However, part of this balloon payment may be forgiven following an appraisal by the 
12.25 	lender and the authority to determine the current market value of the real estate subject to 
12.26 	the mortgage. If the current market value of the land after appraisal is less than the amount 
12.27 	of debt owed by the borrower to the lender and authority on this obligation, that portion of 
12.28 	the obligation that exceeds the current market value of the real property must be forgiven 
12.29 	by the lender and the authority in the following order:
12.30 	(1) deferred interest on secondary principal;
12.31 	(2) secondary principal;
12.32 	(3) deferred interest on primary principal;
13.1 	(4) primary principal as provided in an agreement between the authority and the 
13.2 	lender; and
13.3 	(5) accrued but not deferred interest on primary principal.
13.4 	(d) For an amortized restructured loan, payments must include installments on 
13.5 	primary principal and interest on the primary principal. An amortized restructured loan 
13.6 	must be amortized over a time period and upon terms to be established by the authority by 
13.7 	rule.
13.8 	(e) A borrower may prepay the restructured loan, with all primary and secondary 
13.9 	principal and interest and deferred interest at any time without prepayment penalty.
13.10 	(f) The authority may not participate in refinancing a restructured loan at the 
13.11 	conclusion of the restructured loan.

13.12 	Sec. 20. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision 
13.13 	to read:
13.14 		Subd. 7a.Bond requirements; claims. For entities licensed under this chapter 
13.15 	and chapter 232, the bond requirements and claims against the bond are governed under 
13.16 	section 232.22, subdivision 6a.

13.17 	Sec. 21. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision 
13.18 	to read:
13.19 		Subd. 6a.Bond determinations. If a public grain warehouse operator is licensed 
13.20 	under both this chapter and chapter 223, the warehouse shall have its bond determined 
13.21 	by its gross annual grain purchase amount or its annual average grain storage value, 
13.22 	whichever is greater. For those entities licensed under this chapter and chapter 223, the 
13.23 	entire bond shall be available to any claims against the bond for claims filed under this 
13.24 	chapter and chapter 223.

13.25 	Sec. 22. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
13.26 		Subd. 19.E85. "E85" means a petroleum product that is a blend of agriculturally 
13.27 	derived denatured ethanol and gasoline or natural gasoline that typically contains not more 
13.28 	than 85 percent ethanol by volume, but at a minimum must contain 60 greater than 50
13.29 	 percent ethanol by volume. For the purposes of this chapter, the energy content of E85 
13.30 	will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in 
13.31 	alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification 
13.32 	D5798-07 D5798-11.

13.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.1 	Sec. 23. REVISOR'S INSTRUCTION.
 14.2 	The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, 
14.3 	subdivision 4a, as subdivision 4b and correct any cross-references.

14.4 	Sec. 24.  REPEALER.
 14.5 	Minnesota Statutes 2012, section 18B.07, subdivision 6, is repealed.

14.6 	ARTICLE 2
14.7 	MINNESOTA NOXIOUS WEED LAW

14.8 	Section 1. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
14.9 		Subd. 3.Control. "Control" means to destroy all or part of the aboveground 
14.10 	growth of noxious weeds manage or prevent the maturation and spread of propagating 
14.11 	parts of noxious weeds from one area to another by a lawful method that does not cause 
14.12 	unreasonable adverse effects on the environment as defined in section 18B.01, subdivision 
14.13 	31, and prevents the maturation and spread of noxious weed propagating parts from one 
14.14 	area to another.

14.15 	Sec. 2. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
14.16 		Subd. 4.Eradicate. "Eradicate" means to destroy the aboveground growth and the 
14.17 	roots and belowground plant parts of noxious weeds by a lawful method that which prevents 
14.18 	the maturation and spread of noxious weed propagating parts from one area to another.

14.19 	Sec. 3. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
14.20 		Subd. 10.Permanent pasture, hay meadow, woodlot, and or other noncrop 
14.21 	area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an 
14.22 	area of predominantly native or seeded perennial plants that can be used for grazing or hay 
14.23 	purposes but is not harvested on a regular basis and is not considered to be a growing crop.

14.24 	Sec. 4. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
14.25 		Subd. 12.Propagating parts. "Propagating parts" means all plant parts, including 
14.26 	seeds, that are capable of producing new plants.

14.27 	Sec. 5. [18.771] NOXIOUS WEED CATEGORIES.
14.28 	(a) For purposes of this section, noxious weed category includes each of the 
14.29 	following categories.
15.1 	(b) "Prohibited noxious weed" includes noxious weeds that must be controlled or 
15.2 	eradicated on all lands within the state. Transportation of a prohibited noxious weed's 
15.3 	propagating parts shall be restricted by permit except as allowed by section 18.82. 
15.4 	Prohibited noxious weeds cannot be sold or propagated in Minnesota. There are two 
15.5 	regulatory listings for prohibited noxious weeds in Minnesota:
15.6 	(1) The "Noxious Weed Eradicate List" is established. Prohibited noxious weeds 
15.7 	placed on the Noxious Weed Eradicate List are plants that are not currently known to be 
15.8 	present in Minnesota or are not widely established. These species must be eradicated.
15.9 	(2) The "Noxious Weed Control List" is established. Prohibited noxious weeds 
15.10 	placed on the Noxious Weed Control List are plants that are already established throughout 
15.11 	Minnesota or regions of the state. Species on this list must at least be controlled.
15.12 	(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed 
15.13 	in Minnesota, but whose only feasible means of control is to prevent their spread by 
15.14 	prohibiting the importation, sale, and transportation of their propagating parts in the state 
15.15 	except as allowed by section 18.82.
15.16 	(d) "Specially regulated plants" includes noxious weeds that may be native 
15.17 	species or have demonstrated economic value, but also have the potential to cause harm 
15.18 	in noncontrolled environments. Plants designated as specially regulated have been 
15.19 	determined to pose ecological, economical, or human or animal health concerns. Species 
15.20 	specific management plans or rules that define the use and management requirements 
15.21 	for these plants must be developed by the commissioner of agriculture for each plant 
15.22 	designated as specially regulated. The commissioner must also take measures to minimize 
15.23 	the potential for harm caused by these plants.
15.24 	(e) "County noxious weeds" includes noxious weeds that are designated by 
15.25 	individual county boards to be enforced as prohibited noxious weeds within the county's 
15.26 	jurisdiction and must be approved by the commissioner of agriculture, in consultation with 
15.27 	the Noxious Weed Advisory Committee. Each county board must submit newly proposed 
15.28 	county noxious weeds to the commissioner of agriculture for review. Approved county 
15.29 	noxious weeds shall also be posted with the county's general weed notice prior to May 15 
15.30 	each year. Counties are solely responsible for developing county noxious weed lists and 
15.31 	their enforcement.

15.32 	Sec. 6. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
15.33 		Subd. 3.Cooperative Weed control agreement. The commissioner, municipality, 
15.34 	or county agricultural inspector or county-designated employee may enter into a 
15.35 	cooperative weed control agreement with a landowner or weed management area 
16.1 	group to establish a mutually agreed-upon noxious weed management plan for up to 
16.2 	three years duration, whereby a noxious weed problem will be controlled without 
16.3 	additional enforcement action. If a property owner fails to comply with the noxious weed 
16.4 	management plan, an individual notice may be served.

16.5 	Sec. 7. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
16.6 		Subd. 6.Training for control or eradication of noxious weeds. The commissioner 
16.7 	shall conduct initial training considered necessary for inspectors and county-designated 
16.8 	employees in the enforcement of the Minnesota Noxious Weed Law. The director of 
16.9 	the Minnesota Extension Service may conduct educational programs for the general 
16.10 	public that will aid compliance with the Minnesota Noxious Weed Law. Upon request, 
16.11 	the commissioner may provide information and other technical assistance to the county 
16.12 	agricultural inspector or county-designated employee to aid in the performance of 
16.13 	responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

16.14 	Sec. 8. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
16.15 		Subd. 13.Noxious weed designation. The commissioner, in consultation with the 
16.16 	Noxious Weed Advisory Committee, shall determine which plants are noxious weeds 
16.17 	subject to control regulation under sections 18.76 to 18.91. The commissioner shall 
16.18 	prepare, publish, and revise as necessary, but at least once every three years, a list of 
16.19 	noxious weeds and their designated classification. The list must be distributed to the public 
16.20 	by the commissioner who may request the help of the University of Minnesota Extension, 
16.21 	the county agricultural inspectors, and any other organization the commissioner considers 
16.22 	appropriate to assist in the distribution. The commissioner may, in consultation with 
16.23 	the Noxious Weed Advisory Committee, accept and consider noxious weed designation 
16.24 	petitions from Minnesota citizens or Minnesota organizations or associations.

16.25 	Sec. 9. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
16.26 		Subdivision 1.Permits. Except as provided in section 21.74, if a person wants to 
16.27 	transport along a public highway materials or equipment containing the propagating parts of 
16.28 	weeds designated as noxious by the commissioner, the person must secure a written permit 
16.29 	for transportation of the material or equipment from an inspector or county-designated 
16.30 	employee. Inspectors or county-designated employees may issue permits to persons 
16.31 	residing or operating within their jurisdiction. If the noxious weed propagating parts are 
16.32 	removed from materials and equipment or devitalized before being transported, a permit is 
16.33 	not needed A permit is not required for the transport of noxious weeds for the purpose 
17.1 	of destroying propagating parts at a Department of Agriculture-approved disposal site. 
17.2 	Anyone transporting noxious weed propagating parts for this purpose shall ensure that all 
17.3 	materials are contained in a manner that prevents escape during transport.

17.4 	Sec. 10. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
17.5 		Subdivision 1.Duties. The commissioner shall consult with the Noxious Weed 
17.6 	Advisory Committee to advise the commissioner concerning responsibilities under 
17.7 	the noxious weed control program. The committee shall also evaluate species for 
17.8 	invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused 
17.9 	by them. For each species evaluated, the committee shall recommend to the commissioner 
17.10 	on which noxious weed list or lists, if any, the species should be placed. Species currently
17.11 	 designated as prohibited or restricted noxious weeds or specially regulated plants must 
17.12 	be reevaluated every three years for a recommendation on whether or not they need to 
17.13 	remain on the noxious weed lists. The committee shall also advise the commissioner on 
17.14 	the implementation of the Minnesota Noxious Weed Law and assist the commissioner in 
17.15 	the development of management criteria for each noxious weed category. Members of 
17.16 	the committee are not entitled to reimbursement of expenses nor payment of per diem. 
17.17 	Members shall serve two-year terms with subsequent reappointment by the commissioner.

17.18 	Sec. 11. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
17.19 		Subd. 2.Membership. The commissioner shall appoint members, which shall 
17.20 	include representatives from the following:
17.21 	(1) horticultural science, agronomy, and forestry at the University of Minnesota;
17.22 	(2) the nursery and landscape industry in Minnesota;
17.23 	(3) the seed industry in Minnesota;
17.24 	(4) the Department of Agriculture;
17.25 	(5) the Department of Natural Resources;
17.26 	(6) a conservation organization;
17.27 	(7) an environmental organization;
17.28 	(8) at least two farm organizations;
17.29 	(9) the county agricultural inspectors;
17.30 	(10) city, township, and county governments;
17.31 	(11) the Department of Transportation;
17.32 	(12) the University of Minnesota Extension;
17.33 	(13) the timber and forestry industry in Minnesota;
17.34 	(14) the Board of Water and Soil Resources; and
18.1 	(15) soil and water conservation districts.;
18.2 	(16) Minnesota Association of County Land Commissioners; and
18.3 	(17) members as needed.

18.4 	Sec. 12.  REPEALER.
 18.5 	Minnesota Statutes 2012, section 18.91, subdivisions 3 and 5, are repealed.

18.6 	ARTICLE 3
18.7 	BIOFUEL MINIMUM CONTENT REQUIREMENT

18.8 	Section 1. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
18.9 		Subd. 2.Cellulosic biofuel production goal. The state cellulosic biofuel production 
18.10 	goal is one-quarter of the total amount necessary for ethanol biofuel use required under 
18.11 	section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state 
18.12 	attain a total annual production level of 60,000,000 gallons, whichever is first.

18.13 	Sec. 2. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision 
18.14 	to read:
18.15 		Subd. 3.Expiration. This section expires January 1, 2015.

18.16 	Sec. 3. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
18.17 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
18.18 	have the meanings given.
18.19 	(b) "Green economy" means products, processes, methods, technologies, or services 
18.20 	intended to do one or more of the following:
18.21 	(1) increase the use of energy from renewable sources, including through achieving 
18.22 	the renewable energy standard established in section 216B.1691;
18.23 	(2) achieve the statewide energy-savings goal established in section 216B.2401, 
18.24 	including energy savings achieved by the conservation investment program under section 
18.25 	216B.241;
18.26 	(3) achieve the greenhouse gas emission reduction goals of section 216H.02, 
18.27 	subdivision 1, including through reduction of greenhouse gas emissions, as defined in 
18.28 	section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 
18.29 	but not limited to, carbon capture, storage, or sequestration;
18.30 	(4) monitor, protect, restore, and preserve the quality of surface waters, including 
18.31 	actions to further the purposes of the Clean Water Legacy Act as provided in section 
18.32 	114D.10, subdivision 1;
19.1 	(5) expand the use of biofuels, including by expanding the feasibility or reducing the 
19.2 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can 
19.3 	use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 
19.4 	41A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
19.5 	(6) increase the use of green chemistry, as defined in section 116.9401.
19.6 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
19.7 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
19.8 	transit or otherwise reducing commuting for employees.

19.9 	Sec. 4. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
19.10 	to read:
19.11 		Subd. 1a.Advanced biofuel.  "Advanced biofuel" has the meaning given in Public 
19.12 	Law 110-140, title 2, subtitle A, section 201.

19.13 	Sec. 5. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
19.14 	to read:
19.15 		Subd. 5a.Biofuel. "Biofuel" means a renewable fuel with an approved pathway 
19.16 	under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended 
19.17 	by the federal Energy Independence and Security Act of 2007, Public Law 110â€“140, and 
19.18 	approved for sale by the United States Environmental Protection Agency. As such, biofuel 
19.19 	includes both advanced and conventional biofuels.

19.20 	Sec. 6. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
19.21 	to read:
19.22 		Subd. 7a.Conventional biofuel. "Conventional biofuel" means ethanol derived 
19.23 	from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

19.24 	Sec. 7. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
19.25 		Subdivision 1.Minimum ethanol biofuel content required. (a) Except as provided 
19.26 	in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline 
19.27 	sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
19.28 	 required by clause (1) or (2), whichever is greater at the option of the person responsible 
19.29 	for the product:
19.30 	(1) the greater of:
19.31 	(i) 10.0 percent denatured ethanol conventional biofuel by volume; or
20.1 	(2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume 
20.2 	authorized in a waiver granted by the United States Environmental Protection Agency; or
20.3 	(2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized 
20.4 	in a waiver granted by the United States Environmental Protection Agency or a biofuel 
20.5 	formulation registered by the United States Environmental Protection Agency under 
20.6 	United States Code, title 42, section 7545.
20.7 	(b) For purposes of enforcing the minimum ethanol requirement of paragraph 
20.8 	(a), clause (1), item (i), or clause (2), a gasoline/ethanol gasoline/biofuel blend will be 
20.9 	construed to be in compliance if the ethanol biofuel content, exclusive of denaturants and 
20.10 	other permitted components, comprises not less than 9.2 percent by volume and not more 
20.11 	than 10.0 percent by volume of the blend as determined by an appropriate United States 
20.12 	Environmental Protection Agency or American Society of Testing Materials standard 
20.13 	method of analysis of alcohol/ether content in engine fuels.
20.14 	(c) The provisions of this subdivision are suspended during any period of time that 
20.15 	subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended 
20.16 	pursuant to this subdivision may be any biofuel; however, conventional biofuel must 
20.17 	comprise no less than the portion specified on and after the specified dates:

20.18	(1)
	July 1, 2013
	90 percent
	
20.19	(2)
	January 1, 2015
	80 percent
	
20.20	(3)
	January 1, 2017
	70 percent
	
20.21	(4)
	January 1, 2020
	60 percent
	
20.22	(5)
	January 1, 2025
	no minimum

20.23 	Sec. 8. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
20.24 		Subd. 2a.Federal Clean Air Act waivers; conditions. (a) Before a waiver granted 
20.25 	by the United States Environmental Protection Agency under section 211(f)(4) of the 
20.26 	Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
20.27 	 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2), 
20.28 	or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
20.29 	(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
20.30 	(2) allow for special regulatory treatment of Reid vapor pressure under Code of 
20.31 	Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and 
20.32 	ethanol up to the maximum percent of denatured ethanol by volume authorized under 
20.33 	the waiver.
20.34 	(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause 
20.35 	(2), or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver
20.36 	 or authority specified in United States Code, title 42, section 7545, that allows for greater 
21.1 	blends of gasoline and biofuel in this state, be effective the day after the commissioner 
21.2 	of commerce publishes notice in the State Register. In making this determination, the 
21.3 	commissioner shall consider the amount of time required by refiners, retailers, pipeline 
21.4 	and distribution terminal companies, and other fuel suppliers, acting expeditiously, to 
21.5 	make the operational and logistical changes required to supply fuel in compliance with 
21.6 	the minimum ethanolbiofuel requirement.

21.7 	Sec. 9. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
21.8 		Subd. 2b.Limited liability waiver. No motor fuel shall be deemed to be a defective 
21.9 	product by virtue of the fact that the motor fuel is formulated or blended pursuant to 
21.10 	the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under 
21.11 	any theory of liability except for simple or willful negligence or fraud. This subdivision 
21.12 	does not preclude an action for negligent, fraudulent, or willful acts. This subdivision 
21.13 	does not affect a person whose liability arises under chapter 115, water pollution control; 
21.14 	115A, waste management; 115B, environmental response and liability; 115C, leaking 
21.15 	underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage 
21.16 	to the environment or the public health; under any other environmental or public health 
21.17 	law; or under any environmental or public health ordinance or program of a municipality 
21.18 	as defined in section 466.01.

21.19 	Sec. 10. Minnesota Statutes 2012, section 239.7911, is amended to read:
21.20 	239.7911 PETROLEUM REPLACEMENT PROMOTION.
21.21 		Subdivision 1.Petroleum replacement goal. The tiered petroleum replacement 
21.22 	goal of the state of Minnesota is that biofuel comprises at least the specified portion of 
21.23 	total gasoline sold or offered for sale in this state by each specified year:
21.24 	(1) at least 20 percent of the liquid fuel sold in the state is derived from renewable 
21.25 	sources by December 31, 2015; and
21.26 	(2) at least 25 percent of the liquid fuel sold in the state is derived from renewable 
21.27 	sources by December 31, 2025.

21.28	(1)
	2015
	14 percent
		
21.29	(2)
	2017
	18 percent
		
21.30	(3)
	2020
	25 percent
		
21.31	(4)
	2025
	30 percent
		
21.32 		Subd. 2.Promotion of renewable liquid fuels. (a) The commissioner of agriculture, 
21.33 	in consultation with the commissioners of commerce and the Pollution Control Agency, 
21.34 	shall identify and implement activities necessary for the widespread use of renewable 
22.1 	liquid fuels in the state to achieve the goals in subdivision 1. Beginning November 
22.2 	1, 2005, and continuing through 2015, the commissioners, or their designees, shall 
22.3 	work with convene a task force pursuant to section 15.014 that includes representatives 
22.4 	from the renewable fuels industry, petroleum retailers, refiners, automakers, small 
22.5 	engine manufacturers, and other interested groups, to. The task force shall assist the 
22.6 	commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the 
22.7 	use of greater biofuel blends in this state. The task force must coordinate efforts with the 
22.8 	NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable 
22.9 	and develop annual recommendations for administrative and legislative action.
22.10 	(b) The activities of the commissioners under this subdivision shall include, but not 
22.11 	be limited to:
22.12 	(1) developing recommendations for specific, cost-effective incentives necessary 
22.13 	to expedite the use of greater biofuel blends in this state including, but not limited to, 
22.14 	incentives for retailers to install equipment necessary for dispensing to dispense renewable 
22.15 	liquid fuels to the public;
22.16 	(2) expanding the renewable-fuel options available to Minnesota consumers by 
22.17 	obtaining federal approval for the use of E20 and additional blends that contain a greater 
22.18 	percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
22.19 	(3) developing recommendations for ensuringto ensure that motor vehicles and 
22.20 	small engine equipment have access to an adequate supply of fuel;
22.21 	(4) working with the owners and operators of large corporate automotive fleets in the 
22.22 	state to increase their use of renewable fuels; and
22.23 	(5) working to maintain an affordable retail price for liquid fuels;
22.24 	(6) facilitating the production and use of advanced biofuels in this state; and
22.25 	(7) developing procedures for reporting the amount and type of biofuel under 
22.26 	subdivision 1, and section 239.791, subdivision 1, paragraph (c).
22.27 	(c) Notwithstanding section 15.014, the task force required under paragraph (a) 
22.28 	expires on December 31, 2015.

22.29 	Sec. 11. Minnesota Statutes 2012, section 296A.01, is amended by adding a 
22.30 	subdivision to read:
22.31 		Subd. 8b.Biobutanol. "Biobutanol" means isobutyl alcohol produced by 
22.32 	fermenting agriculturally generated organic material that is to be blended with gasoline 
22.33 	and meets either:
23.1 	(1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline 
23.2 	for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM 
23.3 	for general distribution; or
23.4 	(2) in the absence of an ASTM Standard Specification, the following list of 
23.5 	requirements:
23.6 	(i) visually free of sediment and suspended matter;
23.7 	(ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient 
23.8 	temperature whichever is higher;
23.9 	(iii) free of any adulterant or contaminant that can render it unacceptable for its 
23.10 	commonly used applications;
23.11 	(iv) contains not less than 96 volume percent isobutyl alcohol;
23.12 	(v) contains not more than 0.4 volume percent methanol;
23.13 	(vi) contains not more than 1.0 volume percent water as determined by ASTM 
23.14 	standard test method E203 or E1064;
23.15 	(vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined 
23.16 	by ASTM standard test method D1613;
23.17 	(viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters 
23.18 	as determined by ASTM standard test method D381;
23.19 	(ix) sulfur content of not more than 30 parts per million as determined by ASTM 
23.20 	standard test method D2622 or D5453; and
23.21 	(x) contains not more than 4 parts per million total inorganic sulfate.

23.22 	Sec. 12.  REPEALER.
 23.23 	Minnesota Statutes 2012, section 239.791, subdivision 1a, is repealed.