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HF 3484

as introduced - 91st Legislature (2019 - 2020) Posted on 03/12/2020 04:34pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/18/2020

Current Version - as introduced

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A bill for an act
relating to agriculture; establishing an industrial wood pellet incentive program;
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.30] INDUSTRIAL WOOD PELLET INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Industrial wood pellet" means a small, compressed mass of renewable forest biomass
that is burned to produce electricity or heat.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A facility receiving payment under this section must source
from Minnesota at least 80 percent of the forest biomass used to produce eligible industrial
wood pellets. If a facility is sited 50 miles or less from the state border, forest biomass may
be sourced from within a 100-mile radius. The facility must be located in Minnesota, must
begin production at a specific location by June 30, 2022, and must not begin operating
before July 1, 2020. Eligible facilities include existing companies and facilities that are
adding industrial wood pellet production capacity, or retrofitting existing capacity, as well
as new companies and facilities. Eligible facilities must produce at least 100,000 tons of
industrial wood pellets each year.
new text end

new text begin (b) The commissioner shall not issue payment for industrial wood pellet production that
occurs after June 30, 2032.
new text end

new text begin (c) An eligible industrial wood pellet producer cannot transfer the producer's eligibility
for payments under this section to a facility at a different location.
new text end

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

new text begin Subd. 3. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments to
eligible industrial wood pellet producers for up to ten years after the producer begins eligible
production. The payment rate for each eligible producer's annual production is $12 per ton
of industrial wood pellets that are comprised of at least 90 percent ash tree biomass and $10
per ton for other industrial wood pellets. Each fiscal year, a producer is eligible to receive
payment for up to 100,000 tons of industrial wood pellets produced. The commissioner
shall award payments on a first-come, first-served basis within the limits of available funding.
new text end

new text begin (b) For purposes of this section, an entity that holds a controlling interest in more than
one facility is considered a single eligible producer.
new text end

new text begin Subd. 4. new text end

new text begin Forest biomass requirements. new text end

new text begin (a) Forest biomass that comes from land parcels
greater than 160 acres must be certified by the Forest Stewardship Council, Sustainable
Forestry Initiative, or American Tree Farm System. Uncertified land, parcels of 160 acres
or less, and federal land must be harvested by a logger who has completed training from
the Minnesota logger education program or the equivalent and have a forest stewardship
plan.
new text end

new text begin (b) Ash tree biomass must be acquired and transported in a manner approved by the
commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Claims. new text end

new text begin (a) By the last day of January, April, July, and October, each eligible
producer shall file a claim for payment for industrial wood pellets produced during the
preceding three calendar months. An eligible producer that files a claim under this subdivision
shall include a statement of the eligible producer's total industrial wood pellet tonnage
produced during the quarter covered by the claim. For each claim and statement of industrial
wood pellet tonnage filed under this subdivision, the tonnage must be examined by a certified
public accounting 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.
new text end

new text begin (b) The commissioner must issue payments by February 15, May 15, August 15, and
November 15 and must make a separate payment for each claim filed.
new text end