HF 1898

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:10am

A bill for an act
relating to agriculture; making various changes to agriculture-related provisions;
modifying programs; amending Minnesota Statutes 2020, sections 17.1017,
subdivisions 5, 6; 41A.16, subdivision 5; 41A.17, subdivision 4.

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

Section 1.

Minnesota Statutes 2020, section 17.1017, subdivision 5, is amended to read:

Subd. 5.

Eligible projects.

(a) The commissioner, in cooperation with the program
partners and advisers, shall establish project eligibility guidelines and application processes
to be used to review and select project applicants for financing or other financial or technical
assistance. deleted text begin All projects must be located in an underserved community or must serve primarily
underserved communities in low-income and moderate-income areas.
deleted text end

(b) Projects eligible for financing include, but are not limited to, new construction,
renovations, expansions of operations, and infrastructure upgrades of grocery stores and
small food retailers to improve the availability of and access to affordable, nutritious food,
including fresh fruits and vegetables, and build capacity in areas of greatest need.

(c) Projects eligible for other types of financial assistance such as grants or technical
assistance are primarily projects throughout the state, including, but not limited to, feasibility
studies, new construction, renovations, expansion of operations, and infrastructure upgrades
of small food retailers.

Sec. 2.

Minnesota Statutes 2020, section 17.1017, subdivision 6, is amended to read:

Subd. 6.

Qualifications for receipt of financing and other financial or technical
assistance.

(a) An applicant for receipt of financing through an economic or community
development financial institution, or an applicant for a grant or other financial or technical
assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
or nonprofit community development organization. Each applicant must:

(1) demonstrate community engagement in and support for the project;

(2) demonstrate the capacity to successfully implement the project;

(3) demonstrate a viable plan for long-term sustainability, including the ability to increase
the availability of and access to affordable, nutritious, and culturally appropriate food,
including fresh fruits and vegetables, for underserved communities in low-income and
moderate-income areas; and

(4) demonstrate the ability to repay the debt, to the extent that the financing requires
repayment.

(b) Each applicant must also agree to comply with the following conditions for a period
of at least five years, except as otherwise specified in this section:

(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;

deleted text begin (2) apply to accept Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC) benefits and, if approved, accept WIC benefits;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end allocate at least 30 percent of retail space for the sale of affordable, nutritious,
and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat dairy,
fortified dairy substitute beverages such as soy-based or nut-based dairy substitute beverages,
whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins, consistent
with nutrition standards in national guidelines described in the current United States
Department of Agriculture Dietary Guidelines for Americans;

deleted text begin (4) deleted text end new text begin (3) new text end comply with all data collection and reporting requirements established by the
commissioner; and

deleted text begin (5) deleted text end new text begin (4) new text end promote the hiring, training, and retention of local or regional residents from
low-income and moderate-income areas that reflect area demographics, including
communities of color.

(c) A selected project that is a small food retailer is not subject to the allocation agreement
under paragraph (b), clause (3), and may use financing, grants, or other financial or technical
assistance for refrigeration, displays, or onetime capital expenditures for the promotion and
sale of perishable foods, including a combination of affordable, nutritious, and culturally
appropriate fresh or frozen dairy, dairy substitute products, produce, meats, poultry, and
fish, consistent with nutrition standards in national guidelines described in the current United
States Department of Agriculture Dietary Guidelines for Americans.

Sec. 3.

Minnesota Statutes 2020, section 41A.16, subdivision 5, is amended to read:

Subd. 5.

Agricultural cellulosic biomass sourcing plan.

(a) An eligible producer who
utilizes agricultural cellulosic biomass new text begin other than corn kernel fiber or biogas new text end must submit
a responsible biomass sourcing plan for approval by the commissioner prior to applying for
payments under this section. The commissioner shall make the plan publicly available. The
plan must:

(1) provide a detailed explanation of how agricultural cellulosic biomass will be produced
and managed in a way that preserves soil quality, does not increase soil and nutrient runoff,
avoids introduction of harmful invasive species, limits negative impacts on wildlife habitat,
and reduces greenhouse gas emissions;

(2) include the producer's approach to verifying that biomass suppliers are following
the plan;

(3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project;

(4) include specific numeric goals and timelines for making progress;

(5) require agronomic practices that result in a positive Natural Resources Conservation
Service Soil Conditioning Index score for acres from which biomass from corn stover will
be harvested; and

(6) include biennial soil sampling to verify maintained or increased levels of soil organic
matter.

(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must include
data on progress made by the producer in meeting specific goals laid out in the plan. The
commissioner shall make the report publicly available. The commissioner shall perform an
annual review of submitted reports and may make a determination that the producer is not
following the plan based on the reports submitted. The commissioner may take appropriate
steps, including reducing or ceasing payments, until the producer is in compliance with the
plan.

Sec. 4.

Minnesota Statutes 2020, section 41A.17, subdivision 4, is amended to read:

Subd. 4.

Agricultural cellulosic biomass sourcing plan.

(a) An eligible producer who
utilizes agricultural cellulosic biomass new text begin other than corn kernel fiber or biogas new text end must submit
a responsible biomass sourcing plan to the commissioner prior to applying for payments
under this section. The plan must:

(1) provide a detailed explanation of how agricultural cellulosic biomass will be produced
and managed in a way that preserves soil quality, does not increase soil and nutrient runoff,
avoids introduction of harmful invasive species, limits negative impacts on wildlife habitat,
and reduces greenhouse gas emissions;

(2) include the producer's approach to verifying that biomass suppliers are following
the plan;

(3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project; and

(4) include specific numeric goals and timelines for making progress.

(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must include
data on progress made by the producer in meeting specific goals laid out in the plan. The
commissioner shall make the report publicly available. The commissioner shall perform an
annual review of submitted reports and may make a determination that the producer is not
following the plan based on the reports submitted. The commissioner may take appropriate
steps, including reducing or ceasing payments, until the producer is in compliance with the
plan.