HF 4085

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 11:49 a.m.

A bill for an act
relating to agriculture; establishing the biofuel sales volume incentive program;
authorizing rulemaking; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 41A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [41A.115] BIOFUEL SALES VOLUME INCENTIVE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Beginning January 1, 2028, the commissioner of
agriculture must establish and administer a biofuel sales volume incentive program to provide
financial incentives to retail gasoline stations for sales of eligible biofuel blends occurring
during the previous calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the meanings
given:
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new text begin (1) "commissioner" means the commissioner of agriculture;
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new text begin (2) "eligible biofuel blend" means a blend of gasoline and ethanol that contains 11 to
15 percent denatured ethanol by volume; and
new text end

new text begin (3) "retail gasoline station" means a retail business location that sells gasoline to end
users from fuel dispensers for use in motor vehicles.
new text end

new text begin Subd. 3. new text end

new text begin Incentive payments. new text end

new text begin The commissioner must provide incentive payments of
five cents per gallon of eligible biofuel blend sold at a retail gasoline station eligible under
subdivision 4, not to exceed $50,000 per year.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin A retail gasoline station is eligible for incentive payments if the
retail gasoline station:
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new text begin (1) is located in Minnesota;
new text end

new text begin (2) is not a fleet operator;
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new text begin (3) is operating and dispensing eligible biofuel blend at the retail gasoline station at the
time of application;
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new text begin (4) has not sold eligible biofuel blend before January 1, 2028;
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new text begin (5) submits monthly reports as required under section 239.791, subdivision 8; and
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new text begin (6) has not received money under the AGRI Biofuels Infrastructure Grant Program.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin A retail gasoline station must apply for incentive payments in the
form and manner prescribed by the commissioner and must include:
new text end

new text begin (1) the volume in gallons of eligible biofuel blend sold during the calendar year;
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new text begin (2) copies of fuel sales records; and
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new text begin (3) any additional information required by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Verification. new text end

new text begin The commissioner must verify reported sales volumes against
fuel sales reports submitted to the Department of Commerce pursuant to section 239.791,
subdivision 8.
new text end

new text begin Subd. 7. new text end

new text begin Payments. new text end

new text begin The commissioner must make payments on a first-come, first-served
basis within the limits of available funding.
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new text begin Subd. 8. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement this section.
new text end

Sec. 2. new text begin APPROPRIATION; BIOFUEL SALES VOLUME INCENTIVE PROGRAM.
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new text begin $5,000,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of agriculture to administer the biofuel sales volume incentive program in Minnesota Statutes,
section 41A.115. This is a onetime appropriation and is available until June 30, 2032.
new text end