HF 3273

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; creating a soy-based transformer fluid conversion
allowance program; appropriating money.

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

Section 1. new text begin SOY-BASED TRANSFORMER FLUID CONVERSION ALLOWANCE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this
subdivision have the meanings given them.
new text end

new text begin (b) "Electric utility" means a public utility producing or furnishing electricity,
including, but not limited to, municipal utilities and cooperative electric associations, rural
or otherwise, organized under Minnesota Statutes, chapter 308A.
new text end

new text begin (c) "Soy-based transformer fluid" means dielectric fluid that contains at least 98
percent soy-based products.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish and implement a
soy-based transformer fluid conversion allowance program, issuing funds to help electric
utilities finance the replacement of non-soy-based transformer fluid with renewable,
soy-based transformer fluid.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin An electric utility is eligible to receive a conversion allowance
to offset the cost of purchasing soy-based transformer fluid. Allowances are calculated at
a rate of $2 per gallon of soy-based transformer fluid used during the transition. The total
allowance awarded to any one electric utility may not exceed $80,000. Eligible costs are
limited to those meeting all of the following requirements:
new text end

new text begin (1) the costs were incurred after June 30, 2006, and before January 1, 2008;
new text end

new text begin (2) the costs were incurred in the first 18 months of the transition from using
non-soy-based transformer fluid to using soy-based transformer fluid; and
new text end

new text begin (3) the costs are limited to the purchase of soy-based transformer fluid.
new text end

new text begin Subd. 4. new text end

new text begin Awarding of conversion allowances. new text end

new text begin Applications for conversion
allowances must be made to the commissioner on forms prescribed by the commissioner.
Applicants must furnish a signed, dated copy of purchase agreements or other agreements
to purchase soy-based transformer fluid. The commissioner shall review all applications
and award conversion allowances to electric utilities for eligible costs, subject to the
restrictions in subdivision 3. Applications shall be reviewed and allowances awarded in
the order received by the commissioner. Ineligible applicants shall be notified in writing.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2009.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of agriculture for
the program and is available until expended.
new text end