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HF 109

as introduced - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/16/2020 01:29pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to agriculture; allocating future unrestricted general fund surplus dollars;
modifying the advanced biofuel, renewable chemical, and biomass thermal incentive
programs; appropriating money; amending Minnesota Statutes 2018, sections
16A.152, subdivision 2; 41A.16, subdivision 6; 41A.17, subdivision 5; 41A.18,
subdivision 5; Minnesota Statutes 2019 Supplement, sections 41A.16, subdivision
1; 41A.17, subdivision 1; 41A.18, subdivision 1.

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

Section 1.

Minnesota Statutes 2018, section 16A.152, subdivision 2, is amended to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$1,596,522,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, by the same amount; and

(5) deleted text beginthe clean water fund established in section 114D.50 until $22,000,000 has been
transferred into the fund
deleted text endnew text begin beginning in fiscal year 2025, the renewable development account
established in section 116C.779 until $10,000,000 has been transferred into the account
new text end.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been
made.

Sec. 2.

Minnesota Statutes 2019 Supplement, section 41A.16, subdivision 1, is amended
to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used to produce an advanced
biofuel, except that, if a facility is sited 50 miles or less from the state border, biomass used
to produce an advanced biofuel may be sourced from outside of Minnesota, but only if at
least 80 percent of the biomass is sourced from within a 100-mile radius of the facility or
from within Minnesota. The facility must be located in Minnesota, must begin production
at a specific location by June 30, 2025, and must not begin operating above 23,750 MMbtu
of quarterly advanced biofuel production before July 1, 2015. Eligible facilities include
existing companies and facilities that are adding advanced biofuel production capacity, or
retrofitting existing capacity, as well as new companies and facilities. Production of
conventional corn ethanol and conventional biodiesel is not eligible. Eligible advanced
biofuel facilities must produce at least 1,500 MMbtu of advanced biofuel quarterly.new text begin Beginning
September 1, 2021, the commissioner may only accept claims under this section from
facilities that submitted a claim prior to July 31, 2021.
new text end

(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 3.

Minnesota Statutes 2018, section 41A.16, subdivision 6, is amended to read:


Subd. 6.

Claims.

(a) By the last day of October, January, April, and July, each eligible
biofuel producer shall file a claim for payment for advanced biofuel production during the
preceding three calendar months. An eligible biofuel producer that files a claim under this
subdivision shall include a statement of the eligible biofuel producer's total advanced biofuel
production in Minnesota during the quarter covered by the claim. For each claim and
statement of total advanced biofuel production filed under this subdivision, the volume of
advanced biofuel production must be examined by a CPA firm with a valid permit to practice
under chapter 326A, in accordance with Statements on Standards for Attestation Engagements
established by the American Institute of Certified Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.

new text begin (c) An eligible biofuel producer may file a claim with the commissioner for payment of
the difference between a claim submitted under this section after July 1, 2019, and a lesser,
pro rata amount paid by the commissioner. The commissioner must issue payments until
the producer receives the full amount of the original claim.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 41A.17, subdivision 1, is amended
to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used to produce a renewable
chemical, except that, if a facility is sited 50 miles or less from the state border, biomass
used to produce a renewable chemical may be sourced from outside of Minnesota, but only
if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility
or from within Minnesota. The facility must be located in Minnesota, must begin production
at a specific location by June 30, 2025, and must not begin production of 250,000 pounds
of chemicals quarterly before January 1, 2015. Eligible facilities include existing companies
and facilities that are adding production capacity, or retrofitting existing capacity, as well
as new companies and facilities. Eligible renewable chemical facilities must produce at least
250,000 pounds of renewable chemicals quarterly. Renewable chemicals produced through
processes that are fully commercial before January 1, 2000, are not eligible.new text begin Beginning
September 1, 2021, the commissioner may only accept claims under this section from
facilities that submitted a claim prior to July 31, 2021.
new text end

(b) No payments shall be made for renewable chemical production that occurs after June
30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility
for payments under this section to a renewable chemical facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

Sec. 5.

Minnesota Statutes 2018, section 41A.17, subdivision 5, is amended to read:


Subd. 5.

Claims.

(a) By the last day of October, January, April, and July, each eligible
renewable chemical producer shall file a claim for payment for renewable chemical
production during the preceding three calendar months. An eligible renewable chemical
producer that files a claim under this subdivision shall include a statement of the eligible
producer's total renewable chemical production in Minnesota during the quarter covered by
the claim. For each claim and statement of total renewable chemical production filed under
this paragraph, the volume of renewable chemical production must be examined by a CPA
firm with a valid permit to practice under chapter 326A, in accordance with Statements on
Standards for Attestation Engagements established by the American Institute of Certified
Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.

new text begin (c) An eligible renewable chemical producer may file a claim with the commissioner
for payment of the difference between a claim submitted under this section after July 1,
2019, and a lesser, pro rata amount paid by the commissioner. The commissioner must issue
payments until the producer receives the full amount of the original claim.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 41A.18, subdivision 1, is amended
to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used for biomass thermal
production, except that, if a facility is sited 50 miles or less from the state border, biomass
used for biomass thermal production may be sourced from outside of Minnesota, but only
if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility,
or from within Minnesota. Biomass must be from agricultural or forestry sources. The
facility must be located in Minnesota, must have begun production at a specific location by
June 30, 2025, and must not begin before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting existing capacity,
as well as new companies and facilities. Eligible biomass thermal production facilities must
produce at least 250 MMbtu of biomass thermal quarterly.new text begin Beginning September 1, 2021,
the commissioner may only accept claims under this section from facilities that submitted
a claim prior to July 31, 2021.
new text end

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the producer's
eligibility for payments under this section to a biomass thermal production facility at a
different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.

Sec. 7.

Minnesota Statutes 2018, section 41A.18, subdivision 5, is amended to read:


Subd. 5.

Claims.

(a) By the last day of October, January, April, and July, each producer
shall file a claim for payment for biomass thermal production during the preceding three
calendar months. A producer that files a claim under this subdivision shall include a statement
of the producer's total biomass thermal production in Minnesota during the quarter covered
by the claim. For each claim and statement of total biomass thermal production filed under
this paragraph, the volume of biomass thermal production must be examined by a CPA firm
with a valid permit to practice under chapter 326A, in accordance with Statements on
Standards for Attestation Engagements established by the American Institute of Certified
Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment shall be made for each claim filed.

new text begin (c) An eligible biomass thermal energy producer may file a claim with the commissioner
for payment of the difference between a claim submitted under this section after July 1,
2019, and a lesser, pro rata amount paid by the commissioner. The commissioner must issue
payments until the producer receives the full amount of the original claim.
new text end

Sec. 8. new text beginAPPROPRIATION; BIOINCENTIVE PROGRAMS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$5,000,000 in fiscal year 2020 and $5,000,000 in fiscal year 2021 are appropriated from
the renewable development account in the special revenue fund to the commissioner of
agriculture to issue payments to producers of advanced biofuels, renewable chemicals, and
biomass thermal energy under Minnesota Statutes, sections 41A.16, 41A.17, and 41A.18.
These appropriations are onetime and are available until June 30, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end