SF 2513

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/28/2023 03:20pm

A bill for an act
relating to energy; appropriating money to support investment in green fertilizer
production using renewable energy; requiring reports.

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

Section 1. new text begin SUPPORTING INVESTMENT IN GREEN FERTILIZER PRODUCTION;
APPROPRIATION.
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new text begin (a) $70,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of agriculture for grants to cooperatives to invest in green fertilizer production
facilities. This is a onetime appropriation and is available until June 30, 2032.
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new text begin (b) A grant under this section must include a long-term agreement to purchase nitrogen
fertilizer for cooperative members. Renewable energy, hydrogen, and ammonia may be
produced elsewhere, but the final production of nitrogen fertilizer must occur within
Minnesota.
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new text begin (c) For purposes of this section:
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new text begin (1) a cooperative includes an agricultural or rural electric cooperative organized under
Minnesota Statutes, chapter 308A or 308B;
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new text begin (2) green fertilizer production facilities are facilities that use renewable energy to produce
anhydrous ammonia, urea, or hydrogen;
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new text begin (3) "green hydrogen" means hydrogen produced by splitting water molecules using:
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new text begin (i) grid-based electrolyzers that have matched their electricity consumption with wind
or solar; or
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new text begin (ii) electrolyzers connected directly to a wind or solar facility; and
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new text begin (4) "green fertilizer" means a nitrogen-based fertilizer produced from green hydrogen.
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new text begin (d) The commissioner must develop criteria and scoring procedures for evaluating and
awarding grants. The maximum grant award for a cooperative is $7,000,000.
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new text begin (e) Up to five percent of the amount in paragraph (a) may be used by the department to
administer this section.
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new text begin (f) By December 15 each year, the commissioner must report to the chairs and ranking
minority members of the legislative committees with jurisdiction over agriculture to provide
an update on the progress of projects funded by this appropriation. Each report must include
how much of this appropriation has been used, including the amount used for administration.
The commissioner may include additional information of interest or relevance to the
legislature. This paragraph expires December 31, 2031.
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new text begin (g) By December 15, 2032, the commissioner must complete a final report to the chairs
and ranking minority members of the legislative committees with jurisdiction over agriculture
regarding the uses and impacts of this appropriation. The final report must include a list of
the grants awarded, the amount of the appropriation used for administration, the amount of
green fertilizer produced, and a summary of the economic and environmental impacts of
this production compared to the production and purchase of conventionally produced
fertilizer. The commissioner may include additional information of interest or relevance to
the legislature. This paragraph expires December 31, 2032.
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