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Capital IconMinnesota Legislature

HF 47

as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/22/2021 03:23pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; establishing an oriented strand board 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.21] ORIENTED STRAND BOARD PRODUCTION INCENTIVE.
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 defined in this
subdivision have the meanings given them.
new text end

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

new text begin (c) "Forest resources" means raw wood logs and material primarily made up of cellulose,
hemicellulose, or lignin, or a combination of those ingredients.
new text end

new text begin (d) "Oriented strand board" or "OSB" means a material manufactured into panels using
forest resources.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A facility eligible for payment under this section must source
at least 80 percent of its forest resources raw materials from Minnesota. The facility must
be located in Minnesota, must begin construction activities by June 30, 2022, for a specific
location, must begin production at a specific location by June 30, 2024, and must not begin
operating before January 1, 2022. Eligible facilities must be new OSB construction sites
with total capital investment in excess of $250,000,000. Eligible OSB production facilities
must produce at least 200,000,000 board square feet of OSB each year. At least one product
produced at the facility should be a wood-based wall or roof structural sheathing panel that
has an integrated, cellulose-based paper overlay that serves as a water resistive barrier.
new text end

new text begin (b) No payments shall be made for OSB production that occurs after June 30, 2036, for
those eligible producers under paragraph (a).
new text end

new text begin (c) An eligible producer of OSB shall not 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 producers of OSB. The amount of the payment for each eligible producer's annual
production is $7.50 per 1,000 board square feet of OSB produced at a specific location for
ten years starting after the first calendar year in which production begins.
new text end

new text begin (b) Total payments under this section to an eligible OSB producer in a fiscal year may
not exceed the amount necessary for 400,000,000 board square feet of OSB produced. Total
payments under this section to all eligible OSB producers in a fiscal year may not exceed
the amount necessary for 400,000,000 board square feet of OSB 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 (c) For purposes of this section, an entity that holds a controlling interest in more than
one OSB facility is considered a single eligible producer.
new text end

new text begin Subd. 4. new text end

new text begin Forest resources requirements. new text end

new text begin Forest resources that are purchased to be used
at the facility must be in compliance with one or more of the following: the Sustainable
Forestry Initiative Fiber Sourcing Standard, the Forest Stewardship Council Chain of Custody
Standard, or the Forest Stewardship Controlled Wood Standard. For forest resources that
come from land parcels greater than 160 acres, all efforts must be made to procure from
land that is certified to one or more of the following: the Forest Stewardship Council Forest
Management Standard, the Sustainable Forestry Initiative Forest Management Standard, or
the American Tree Farm System.
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 October, January, April, and July, each eligible
OSB producer shall file a claim for payment for OSB production during the preceding three
calendar months. An eligible OSB producer that files a claim under this subdivision shall
include a statement of the eligible producer's total board square feet of OSB produced during
the quarter covered by the claim. For each claim and statement of total board square feet
of OSB filed under this subdivision, the board square feet of OSB produced 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 November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) In fiscal year 2025, a sum sufficient to make the payments
required by this section, not to exceed $1,500,000, is appropriated from the forest
management investment account in the natural resources fund to the commissioner. This is
a onetime appropriation.
new text end

new text begin (b) Beginning in fiscal year 2026, a sum sufficient to make the payments required by
this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
general fund to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end