Minnesota Legislature
HF 2456
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/17/2014 03:26pm
Current Version - 1st Engrossment
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23
1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5
4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12
A bill for an act
relating to agriculture; creating a renewable chemical and advanced biofuel
capital equipment loan program; creating an advanced biofuel production
incentive program; establishing a renewable chemical production incentive
program; 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.107] RENEWABLE CHEMICAL AND ADVANCED BIOFUEL
CAPITAL EQUIPMENT LOANS.
new text end
new text begin Subdivision 1. new text end
new text begin Program. new text end
new text begin
(a) The commissioner shall establish a renewable chemical
and advanced biofuel loan program to make loans for capital equipment purchases by
persons participating in advanced biofuel, renewable chemical, and anaerobic digestion
production facilities. The commissioner, in consultation with the commissioners of natural
resources and employment and economic development, shall establish guidelines for
loans issued under this section.
new text end
new text begin
(b) The definitions in sections 41A.13, subdivision 2, and 41A.14, subdivision
2, apply to this section.
new text end
new text begin Subd. 2. new text end
new text begin Fund. new text end
new text begin
A renewable chemical and advanced biofuel capital equipment
revolving loan fund is established in the state treasury. All repayments of loans granted
from the fund, including principal and interest, must be deposited into the fund. Interest
earned on money in the fund accrues to the fund. Money in the fund is appropriated to
the commissioner to make renewable chemical and advanced biofuel capital equipment
loans under this section.
new text end
Sec. 2.
new text begin
[41A.13] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
new text end
new text begin Subdivision 1. new text end
new text begin Appropriation. new text end
new text begin
A sum sufficient to make the payments required by
this section is annually appropriated from the general fund to the commissioner, and all
money so appropriated is available until expended.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section and sections 41A.107 and
41A.14, the terms defined in this subdivision have the meanings given.
new text end
new text begin
(b) "Advanced biofuels" has the meaning given in section 239.051, subdivision 1a.
new text end
new text begin
(c) "Anaerobic digestion" means a series of biological processes in which
microorganisms break down biodegradable material in the absence of oxygen to produce a
mixture of methane, carbon dioxide, and other trace gases.
new text end
new text begin
(d) "Commissioner" means the commissioner of agriculture.
new text end
new text begin
(e) "MMBtu" means one million British thermal units.
new text end
new text begin
(f) "Qualifying facility" or "facility" means a facility that satisfies the eligibility
criteria in subdivision 3.
new text end
new text begin Subd. 3. new text end
new text begin Eligibility. new text end
new text begin
An eligible facility must source at least 80 percent of its raw
materials from Minnesota. Raw materials must be from an agricultural or forestry source
or from the organic content of municipal solid waste. The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2020, and must not
begin operation above 950,000 MMBtu of annual biofuel production before January 1,
2015. Eligible facilities include existing facilities that are adding additional production
capacity, as well as new facilities. Production of conventional corn ethanol, conventional
biodiesel, and other fully commercial technologies is not eligible. An advanced biofuel
facility must produce at least 950,000 MMBtu per year.
new text end
new text begin Subd. 4. new text end
new text begin Advanced biofuel producer payments. new text end
new text begin
(a) The commissioner shall make
cash payments to eligible producers of advanced biofuel at a qualifying facility. For
the purpose of this subdivision, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer. The amount of
the payment for each eligible producer's annual production is $2.1053 per MMBtu for
advanced biofuel production from cellulosic biomass and $1.053 per MMBtu for advanced
biofuel production from sugar or starch at a specific location for ten years after the start of
production. All forestry-derived biomass must be produced using Minnesota state biomass
harvesting guidelines. All biomass from brushlands must be produced using Minnesota
Brushland Harvesting Biomass Harvest Guidelines. Land that is larger than 160 acres and
used to produce forestry-derived biomass must be certified by the Forest Stewardship
Council, Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land
that is 160 acres or less and used to produce forestry-derived biomass must be harvested
by a Minnesota Certified Master Logger and must have a forest stewardship plan.
new text end
new text begin
(b) No payment shall be made for advanced biofuel production that occurs after
June 30, 2030. 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.
new text end
new text begin
(c) Total payments under this section to all eligible biofuel producers may not
exceed $15,000,000 in a fiscal year. Total payments under this section to an eligible
biofuel producer in a fiscal year may not exceed the amount necessary for 2,850,000
MMBtu of biofuel production.
new text end
new text begin
(d) By the last day of October, January, April, and July, each eligible biofuel producer
shall file with the commissioner 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 an independent
certified public accountant in accordance with Statements on Standards for Attestation
Engagements established by the American Institute of Certified Public Accountants.
new text end
new text begin
(e) The commissioner must make payments by November 15, February 15, May 15,
and August 15. The commissioner must issue a separate payment for each claim filed.
The total quarterly payment to an eligible producer under this paragraph may not exceed
the amount necessary for 712,500 MMBtu of biofuel production.
new text end
new text begin
(f) Any producer that ceases production for any reason is ineligible to receive
payments under this section until they begin producing again.
new text end
new text begin
(g) Annually, within 90 days of its fiscal year end, an advanced biofuel producer
receiving payments under this section must file a disclosure statement on a form provided
by the commissioner. The initial disclosure statement must include a summary description
of the business structure of the producer and a listing of the percentages of ownership
and governance by any person or other entity with an ownership interest or governance
rights of five percent or greater. Annual disclosures must include a copy of the producer's
annual audited financial statements, including the auditor's report and footnotes. No later
than February 15 each year, the commissioner shall deliver to the chairs of the standing
committees of the senate and the house of representatives with jurisdiction over agricultural
policy and agricultural finance an annual report summarizing aggregated and facility-level
production and financial performance data for all facilities that received payment under
this section during the preceding calendar year. Audited financial statements and notes
and disclosure statements submitted to the commissioner are nonpublic data under section
13.02, subdivision 9. Notwithstanding the provisions of chapter 13 relating to nonpublic
data, a summary of the submitted audited financial reports and notes and disclosure
statements must be contained in the report to the committee chairs and are public data.
new text end
new text begin
(h) Renewable chemical production for which payment has been received under
section 41A.14 is not eligible for payment under this section.
new text end
Sec. 3.
new text begin
[41A.14] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
new text end
new text begin Subdivision 1. new text end
new text begin Appropriation. new text end
new text begin
A sum sufficient to make the payments required by
this section is annually appropriated from the general fund to the commissioner, and all
money so appropriated is available until expended.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) The definitions in this subdivision and section 41A.13,
subdivision 2, apply to this section.
new text end
new text begin
(b) "Cellulosic sugar" means sugar derived from lignocellulosic materials from
agricultural or forestry resources.
new text end
new text begin
(c) "Qualifying facility" or "facility" means a facility that satisfies the eligibility
criteria in subdivision 3.
new text end
new text begin
(d) "Renewable chemical" means a chemical with biobased content as defined in
section 41A.105, subdivision 1a.
new text end
new text begin Subd. 3. new text end
new text begin Eligibility. new text end
new text begin
An eligible facility must source at least 90 percent of its
raw materials from Minnesota. Raw materials must be from an agricultural or forestry
source or from the organic content of municipal solid waste. The facility must be located
in Minnesota, must begin production at a specific location by June 30, 2020, and must
not begin production of 30,000,000 pounds of chemicals annually before January 1,
2015. Eligible facilities include existing facilities that are adding additional production
capacity, as well as new facilities. Renewable chemical facilities must produce at least
30,000,000 pounds per year. Renewable chemicals produced through processes that are
fully commercial before January 1, 2000, are not eligible.
new text end
new text begin Subd. 4. new text end
new text begin Renewable chemical producer payments. new text end
new text begin
(a) The commissioner shall
make cash payments to eligible producers of renewable chemicals at a qualifying facility.
For the purposes of this subdivision, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.
The amount of the payment for each producer's annual production is $0.03 per pound
of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06
per pound of cellulosic-derived renewable chemical produced at a specific location for
ten years after the start of production. All forestry-derived cellulosic biomass must
be produced using Minnesota state biomass harvesting guidelines. All biomass from
brushlands must be produced using Minnesota Brushland Harvesting Biomass Harvest
Guidelines. Land that is larger than 160 acres and used to produce forestry-derived
biomass must be certified by the Forest Stewardship Council, Sustainable Forestry
Initiative, or American Tree Farm System. Uncertified land that is 160 acres or less and
used to produce forestry-derived biomass must be harvested by a Minnesota Certified
Master Logger and must have a forest stewardship plan.
new text end
new text begin
(b) No payments shall be made for renewable chemical production that occurs
after June 30, 2030. 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.
new text end
new text begin
(c) Total payments under this section to all eligible renewable chemical producers
may not exceed $15,000,000 in a fiscal year. Total payments under this section to
an eligible renewable chemical producer in a fiscal year may not exceed the amount
necessary for 99,999,999 pounds of renewable chemicals.
new text end
new text begin
(d) By the last day of October, January, April, and July, each eligible renewable
chemical producer shall file a claim with the commissioner 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 subdivision, the volume of renewable chemical production
must be examined by an independent certified public accountant in accordance with
Statements on Standards for Attestation Engagements established by the American
Institute of Certified Public Accountants.
new text end
new text begin
(e) The commissioner must make payments by November 15, February 15, May 15,
and August 15. The commissioner must issue a separate payment for each claim filed.
The total quarterly payment to an eligible producer under this paragraph may not exceed
the amount necessary for 25,000,000 pounds of production.
new text end
new text begin
(f) Any producer that ceases production for any reason is ineligible to receive
payments under the program until they begin producing again.
new text end
new text begin
(g) Annually, within 90 days of its fiscal year end, a renewable chemical producer
receiving payments under this section must file a disclosure statement on a form provided
by the commissioner. The initial disclosure statement must include a summary description
of the business structure of the producer and a listing of the percentages of ownership
and governance by any person or other entity with an ownership interest or governance
rights of five percent or greater. Annual disclosures must include a copy of the producer's
annual audited financial statements, including the auditor's report and footnotes. No later
than February 15 each year, the commissioner shall deliver to the chairs of the standing
committees of the senate and the house of representatives with jurisdiction over agricultural
policy and agricultural finance an annual report summarizing aggregated and facility-level
production and financial performance data for all facilities that received payment under
this section during the preceding calendar year. Audited financial statements and notes
and disclosure statements submitted to the commissioner are nonpublic data under section
13.02, subdivision 9. Notwithstanding the provisions of chapter 13 relating to nonpublic
data, a summary of the submitted audited financial reports and notes and disclosure
statements must be contained in the report to the committee chairs and are public data.
new text end
new text begin
(h) Advanced biofuel production for which payment has been received under section
41A.13 is not eligible for payment under this section.
new text end