HF 4872

as introduced - 92nd Legislature (2021 - 2022) Posted on 05/11/2022 01:41pm

A bill for an act
relating to natural resources; establishing Lowland Conifer Carbon Reserve;
modifying uses of positive general fund balance; requiring reports; appropriating
money; amending Minnesota Statutes 2021 Supplement, section 16A.152,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 88.

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

Section 1.

Minnesota Statutes 2021 Supplement, section 16A.152, subdivision 2, is
amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$2,377,399,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amount;

(5) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000; deleted text begin and
deleted text end

new text begin (6) the amount necessary to compensate the permanent school fund for lands within the
Lowland Conifer Carbon Reserve as required under section 88.85, subdivision 9; and
new text end

deleted text begin (6) deleted text end new text begin (7) new text end for a forecast in November only, the amount remaining after the transfer under
clause (5) must be used to reduce the percentage of accelerated June liability sales tax
payments required under section 289A.20, subdivision 4, paragraph (b), until the percentage
equals zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendors based on the reduction required by this clause.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

Sec. 2.

new text begin [88.85] LOWLAND CONIFER CARBON RESERVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "lowland conifer stands"
means treed wetlands that occur on mucky mineral or wet organic soils. Lowland conifer
stands include black spruce, tamarack, and white cedar cover types, including stagnant
stands. These cover types include three wetland forest systems:
new text end

new text begin (1) wet forest system;
new text end

new text begin (2) rich forested peatland system; and
new text end

new text begin (3) acid peatland system.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin (a) The Lowland Conifer Carbon Reserve is established to
mitigate climate change and protect ecologically unique areas. It includes all stands in the
state forest system identified as lowland conifer stands under this section and includes the
distribution of underlying peatlands associated with or adjoining each stand.
new text end

new text begin (b) By January 1, 2023, the commissioner must designate and list the areas included in
the Lowland Conifer Carbon Reserve and submit a report with the designated list to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over environment and natural resources.
new text end

new text begin (c) By July 1, 2023, the commissioner must prepare maps locating the areas identified
under paragraph (b); provide, to the extent possible, legal descriptions of each area; and
submit the maps and legal descriptions to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over environment and natural resources.
new text end

new text begin Subd. 3. new text end

new text begin Carbon sequestration; reports. new text end

new text begin (a) By January 1, 2024, the commissioner
must prepare and submit a report to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over environment and natural resources
with a list of all stands in the Lowland Conifer Carbon Reserve that are 90 years of age or
older and an estimate of the tons of carbon sequestered in the boles of the trees in these
stands. The commissioner must update and submit the report to the chairs and ranking
minority members every five years thereafter.
new text end

new text begin (b) By January 1, 2024, the commissioner must prepare and submit a report to the chairs
and ranking minority members of the legislative committees and divisions with jurisdiction
over environment and natural resources identifying any bogs and peatlands within the
Lowland Conifer Carbon Reserve and an estimate of the tons of carbon sequestered in the
peat.
new text end

new text begin Subd. 4. new text end

new text begin Productive stands; report. new text end

new text begin By January 1, 2024, the commissioner must prepare
and submit a report to the chairs and ranking minority members of the legislative committees
and divisions with jurisdiction over environment and natural resources with a list and map
showing all productive stands within the Lowland Conifer Carbon Reserve and identify
which stands were harvested within the five years preceding establishment of the Lowland
Conifer Carbon Reserve. By January 15 each year thereafter, the commissioner must update
the list showing the most recent harvest year and species harvested and submit the list in a
report to the chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over environment and natural resources finance and policy.
new text end

new text begin Subd. 5. new text end

new text begin Timber harvesting restrictions. new text end

new text begin (a) The commissioner may issue a timber
permit to harvest a stand within the Lowland Conifer Carbon Reserve only if:
new text end

new text begin (1) the stand is less than 90 years of age; and
new text end

new text begin (2) the stand is accessible to heavy logging equipment as determined by the commissioner.
new text end

new text begin (b) For stands accessible for only part of the year, trees may be harvested only during
the times the stand is accessible as determined by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Peat harvesting restrictions. new text end

new text begin (a) A person may not harvest peat in the Lowland
Conifer Carbon Reserve.
new text end

new text begin (b) This subdivision does not apply to peat harvested under a permit issued before the
peat was included in the Lowland Conifer Carbon Reserve.
new text end

new text begin Subd. 7. new text end

new text begin Management. new text end

new text begin To the extent possible, the commissioner must passively manage
stands within the Lowland Conifer Carbon Reserve. Regeneration of harvested stands within
the Lowland Conifer Carbon Reserve must be done naturally.
new text end

new text begin Subd. 8. new text end

new text begin Drained lands. new text end

new text begin The commissioner must identify lands within the Lowland
Conifer Carbon Reserve that were drained for agricultural purposes but forfeited to the state
for nonpayment of taxes. The commissioner must make reasonable efforts to restore the
lands to their original hydrological condition, such as blocking or filling active drain pipes,
tiles, or ditches on the lands.
new text end

new text begin Subd. 9. new text end

new text begin School trust lands. new text end

new text begin The commissioner must compensate the permanent school
fund for school trust lands within the Lowland Conifer Carbon Reserve. To the extent
funding is available under section 16A.152, subdivision 2, and other sources, the
commissioner must extinguish the school trust interest of lands as provided under section
92.83. Payments for school trust lands without commercial value must be compensated at
an amount equal to $500 per acre. Payments for school trust lands with commercial value
must be compensated at a rate agreed to by the commissioner and the school trust lands
director for each parcel, with a parcel comprising a single stand or multiple adjoining stands.
new text end

new text begin Subd. 10. new text end

new text begin Existing contracts and legislation. new text end

new text begin Obligations in effect, including permits,
leases, and legislative directives in effect before designation of the Lowland Conifer Carbon
Reserve, are not impacted by this section and continue until they expire or are removed.
new text end

new text begin Subd. 11. new text end

new text begin Sunset. new text end

new text begin This section expires December 31, 2099.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2023 is appropriated from the general fund to the commissioner of
natural resources for purposes of the Lowland Conifer Carbon Reserve under Minnesota
Statutes, section 88.85. This is a onetime appropriation and is available until June 30, 2025.
new text end