Minnesota Legislature
SF 2667
as introduced - 93rd Legislature (2023 - 2024) Posted on 06/15/2023 11:20am
Current Version - as introduced
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A bill for an act
relating to agriculture; modifying advanced biofuel production incentive and
renewable chemical production incentive provisions; amending Minnesota Statutes
2022, sections 41A.16, subdivision 7; 41A.17, subdivision 6; 41A.18, subdivision
6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 41A.16, subdivision 7, is amended to read:
Subd. 7.
Eligibility for participants after April 1, 2023.
(a) A facility eligible for
payment under this section must sourcenew text begin from Minnesotanew text end at least 80 percent deleted text begin raw materials
from Minnesotadeleted text end new text begin of the biomass used to produce an advanced biofuelnew text end . If a facility is sited
50 miles or less from the state border, deleted text begin raw materialsdeleted text end new text begin biomass that the facility uses to produce
an advanced biofuelnew text end may be sourced fromnew text begin out of state when at least 80 percent of the biomass
is sourcednew text end within a 100-mile radiusnew text begin of the facility or from Minnesotanew text end . deleted text begin Raw materials must
be from agricultural or forestry sources or from solid waste.deleted text end The facility must be located in
Minnesota, must begin production at a specific location after April 1, 2023, and before June
30, 2025, and must not begin operating above 23,750 MMbtu of quarterlynew text begin advancednew text end biofuel
production before July 1, 2015. Eligible facilities include existing companies and facilities
that are adding advanced biofuel production capacity, or retrofitting existing capacity, as
well as new companies and facilities. Production of conventional corn ethanol and
conventional biodiesel is not eligible. Eligible advanced biofuel facilities must produce at
least deleted text begin 23,750deleted text end new text begin 1,500new text end MMbtu of new text begin advanced new text end biofuel quarterly.
(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a).
(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.
(f) Biobutanol is eligible under this section.
Sec. 2.
Minnesota Statutes 2022, section 41A.17, subdivision 6, is amended to read:
Subd. 6.
Eligibility for participants after April 1, 2023.
(a) A facility eligible for
payment under this program must sourcenew text begin from Minnesotanew text end at least 80 percent deleted text begin biobased
content from Minnesota. For the purposes of this subdivision, "biobased content" means a
chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or
fuel and that has a biobased percentage of at least 51 percent as determined by testing
representative samples using American Society for Testing and Materials specification
D6866deleted text end new text begin of the biomass used to produce a renewable chemicalnew text end . If a facility is sited 50 miles
or less from the state border, deleted text begin biobased content mustdeleted text end new text begin biomass that the facility uses to produce
a renewable chemical maynew text end be sourced fromnew text begin out of state when at least 80 percent of the
biomass is sourced fromnew text end within a 100-mile radiusnew text begin of the facility or from Minnesotanew text end . deleted text begin Biobased
content must be from agricultural or forestry sources or from solid waste.deleted text end The facility must
be located in Minnesota, must begin production at a specific location after April 1, 2023,
and before June 30, 2025, and must not begin production of deleted text begin 750,000deleted text end new text begin 250,000new text end pounds or
more of chemicals quarterly before January 1, 2015. Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting existing capacity,
as well as new companies and facilities. Eligible renewable chemical facilities must produce
at least deleted text begin 750,000deleted text end new text begin 250,000new text end pounds of renewable chemicals quarterly. Renewable chemicals
produced through processes that are fully commercial before January 1, 2000, are not
eligible.
(b) No payments shall be made for renewable chemical production that occurs after June
30, 2035, for those eligible renewable chemical producers under paragraph (a).
(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility
for payments under this section to a renewable chemical facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.
Sec. 3.
Minnesota Statutes 2022, section 41A.18, subdivision 6, is amended to read:
Subd. 6.
Eligibility for participants after April 1, 2023.
(a) A facility eligible for
payment under this section must source new text begin from Minnesota new text end at least 80 percent deleted text begin raw materials
from Minnesotadeleted text end new text begin of the biomass used for biomass thermal productionnew text end . If a facility is sited
50 miles or less from the state border, deleted text begin raw materials shoulddeleted text end new text begin biomass that the facility uses
for biomass thermal production maynew text end be sourced from new text begin out of state when at least 80 percent
of the biomass is sourced fromnew text end new text begin new text end within a 100-mile radiusnew text begin of the facility or from Minnesotanew text end .
deleted text begin Raw materialsdeleted text end new text begin Biomassnew text end must be from agricultural or forestry sources. The facility must be
located in Minnesota, must have begun production at a specific location after April 1, 2023,
and before June 30, 2025, and must not begin before July 1, 2015. Eligible facilities include
existing companies and facilities that are adding production capacity, or retrofitting existing
capacity, as well as new companies and facilities. Eligible biomass thermal production
facilities must produce at least 250 MMbtu of biomass thermal quarterly.
(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).
(c) An eligible producer of biomass thermal production shall not transfer the producer's
eligibility for payments under this section to a biomass thermal production facility at a
different location.
(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.