HF 4024

as introduced - 91st Legislature (2019 - 2020) Posted on 03/02/2020 02:04pm

A bill for an act
relating to agriculture; modifying bioincentive program; appropriating money;
amending Minnesota Statutes 2019 Supplement, sections 41A.16, subdivision 2;
41A.17, subdivision 2; 41A.18, subdivision 2.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 41A.16, subdivision 2, is amended
to read:

Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments to
eligible producers of advanced biofuel. 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,
starch, oil, or animal fat at a specific location for ten years after the start of production.

(b) 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. Total payments
under this section to all eligible biofuel producers in a fiscal year may not exceed the amount
necessary for 17,100,000 MMbtu of biofuel production. If the total amount for which all
producers are eligible in a quarter exceeds the amount available for payments, the
commissioner shall make the payments on a pro rata basis. new text begin An eligible producer may reapply
for payment of the amount of the difference between the claim for payment filed under
subdivision 6 and the pro rata amount received until the full amount of the original claim
is paid.
new text end

(c) For purposes of this section, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2019, and
applies to any and all claims filed after January 1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 41A.17, subdivision 2, is amended
to read:

Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make payments
to eligible producers of renewable chemicals located in the state. 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, starch, oil, or animal fat, and $0.06 per pound
of cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) 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
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. If the total amount for which all producers are eligible in
a quarter exceeds the amount available for payments, the commissioner shall make the
payments on a pro rata basis. new text begin An eligible producer may reapply for payment of the amount
of the difference between the claim for payment filed under subdivision 5 and the pro rata
amount received until the full amount of the original claim is paid.
new text end

(d) An eligible facility may blend renewable chemicals with other chemicals that are
not renewable chemicals, but only the percentage attributable to renewable chemicals in
the blended product is eligible to receive payment.

(e) For purposes of this section, an entity that holds a controlling interest in more than
one renewable chemical production facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2019, and
applies to any and all claims filed after January 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2019 Supplement, section 41A.18, subdivision 2, is amended
to read:

Subd. 2.

Payment amounts; bonus; limits; blending.

(a) The commissioner shall make
payments to eligible producers of biomass thermal located in the state. The amount of the
payment for each producer's annual production is $5.00 per MMbtu of biomass thermal
production produced at a specific location for ten years after the start of production.

(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass
is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible thermal producer in a fiscal year
may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total
payments under this section to all eligible thermal producers in a fiscal year may not exceed
the amount necessary for 150,000 MMbtu of total thermal production. If the total amount
for which all producers are eligible in a quarter exceeds the amount available for payments,
the commissioner shall make the payments on a pro rata basis. new text begin An eligible producer may
reapply for payment of the amount of the difference between the claim for payment filed
under subdivision 5 and the pro rata amount received until the full amount of the original
claim is paid.
new text end

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass
thermal production facility, but only the percentage attributable to biomass meeting the
cellulosic forestry biomass requirements or agricultural cellulosic biomass sourcing plan is
eligible to receive payment.

(e) When a facility is eligible due to adding production capacity or retrofitting existing
capacity, the entire amount of biomass meeting the cellulosic forestry biomass requirements
or agricultural cellulosic biomass sourcing plan is assumed to have been used for the biomass
thermal production from the added or retrofitted production capacity.

(f) For purposes of this section, an entity that holds a controlling interest in more than
one biomass thermal production facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2019, and
applies to any and all claims filed after January 1, 2019.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $6,500,000 in fiscal year 2020 and $6,500,000 in fiscal year 2021 from the general fund
are added to the appropriation in Laws 2019, First Special Session chapter 1, article 1,
section 2, subdivision 4, paragraph (b), clause 2, to be used only for incentive payments
under Minnesota Statutes, sections 41A.16, 41A.17, and 41A.18.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end