HF 3197

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agricultural motor fuels; defining 
  1.3             biodiesel fuel oil; providing incentives for the 
  1.4             production of biodiesel fuel oil and ethanol from 
  1.5             second-generation technology plants; amending 
  1.6             Minnesota Statutes 2000, section 41A.09, subdivision 
  1.7             5a, by adding a subdivision; proposing coding for new 
  1.8             law in Minnesota Statutes, chapters 41A; 239. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 41A.09, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 3b.  [SECOND-GENERATION TECHNOLOGY ETHANOL 
  1.13  PLANTS.] (a) To the extent that producer payments for (1) 
  1.14  eligible ethanol plant capacity in production on January 1, 
  1.15  2002, plus (2) producer payments for biodiesel fuel oil under 
  1.16  section 41A.12 in the previous fiscal year total less than 
  1.17  $37,000,000, the commissioner of agriculture shall make cash 
  1.18  payments to second-generation technology ethanol plants as 
  1.19  provided in this subdivision.  For purposes of this subdivision, 
  1.20  second-generation technology ethanol plants means ethanol 
  1.21  production facilities designed with complementary equipment for 
  1.22  extraction of marketable fractions of the feedstock grain prior 
  1.23  to the fermentation process. 
  1.24     (b) Except as provided in paragraph (c), qualifying 
  1.25  producers shall receive payments under this subdivision as if 
  1.26  payments were made under subdivision 3a for a period of ten 
  1.27  years from the date production begins. 
  2.1      (c) If total claims from second-generation technology 
  2.2   ethanol plants for eligible production exceed the amount 
  2.3   available under paragraph (a), the payments must be prorated 
  2.4   among second-generation technology ethanol plants based on their 
  2.5   eligible production. 
  2.6      Sec. 2.  Minnesota Statutes 2000, section 41A.09, 
  2.7   subdivision 5a, is amended to read: 
  2.8      Subd. 5a.  [EXPIRATION.] This section expires June 30, 2010 
  2.9   2014, and the unobligated balance of each appropriation under 
  2.10  this section on that date reverts to the general fund. 
  2.11     Sec. 3.  [41A.12] [BIODIESEL DEVELOPMENT.] 
  2.12     Subdivision 1.  [DEFINITIONS.] (a) The terms defined in 
  2.13  this subdivision have the meanings given: 
  2.14     (b) "Biodiesel" or "biodiesel fuel oil" has the meaning 
  2.15  given in section 239.77. 
  2.16     (c) "Biodiesel fuel plant" means a facility located in 
  2.17  Minnesota at which finished biodiesel fuel oil is produced. 
  2.18     (d) "Biodiesel producer" means an entity that operates a 
  2.19  biodiesel plant. 
  2.20     Subd. 2.  [PRODUCER PAYMENTS.] (a) To the extent that 
  2.21  producer payments in the previous fiscal year under the ethanol 
  2.22  development program of section 41A.09 total less than 
  2.23  $37,000,000, the commissioner of agriculture shall make cash 
  2.24  payments to biodiesel producers as provided in this subdivision. 
  2.25     (b) Except as provided in paragraph (d), for each gallon of 
  2.26  biodiesel fuel oil produced, up to a maximum of 2,000,000 
  2.27  gallons per producer in each fiscal year, the payment is $.020. 
  2.28     (c) By August 15 of each year, each biodiesel producer must 
  2.29  certify to the commissioner of agriculture eligible biodiesel 
  2.30  fuel oil production in the previous fiscal year on forms 
  2.31  provided by the commissioner. 
  2.32     (d) If total claims from biodiesel producers for eligible 
  2.33  production exceed the amount available under paragraph (a) for 
  2.34  biodiesel fuel oil producer payments, the payments must be 
  2.35  prorated among producers based on their eligible production. 
  2.36     Sec. 4.  [239.77] [BIODIESEL FUEL OIL.] 
  3.1      "Biodiesel fuel oil" means a renewable, biodegradable, mono 
  3.2   alkyl ester combustible liquid fuel derived from agricultural 
  3.3   plant oils or animal fats that meets American Society for 
  3.4   Testing and Materials Provisional Specification PS121-99 for 
  3.5   Biodiesel Fuel (B100) Blend Stock for Distillate Fuels. 
  3.6      Sec. 5.  [EFFECTIVE DATE.] 
  3.7      Sections 2 and 4 are effective the day following final 
  3.8   enactment.  Sections 1 and 3 are effective for eligible 
  3.9   production occurring after June 30, 2002.