Minnesota Legislature
SF 2893
1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/23/2018 12:58pm
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A bill for an act
relating to agriculture; reducing the minimum production level for advanced biofuel
production incentive payments; expanding the options for ingredients allowed to
be used in advanced biofuel production to qualify for incentive payments; reducing
the minimum production level for renewable chemical production incentive;
amending Minnesota Statutes 2016, sections 41A.16, subdivisions 1, 2; 41A.17,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials may be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources or from solid waste. The facility
must be located in Minnesota, must begin production at a specific location by June 30, 2025,
and must not begin operating above deleted text begin 23,750deleted text end new text begin 1,500new text end MMbtu of quarterly new text begin advanced new 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 2016, 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 deleted text begin ordeleted text end new text begin ,new text end
starchnew text begin , oil, or animal fatnew text end 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. The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.
(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.
Sec. 3.
Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
(a) A facility eligible for payment under this program must
source at least 80 percent biobased content from Minnesota. If a facility is sited 50 miles
or less from the state border, biobased content must be sourced from within a 100-mile
radius. Biobased content must be from agricultural or forestry sources or from solid waste.
The facility must be located in Minnesota, must begin production at a specific location by
June 30, 2025, and must not begin production of deleted text begin 750,000deleted text end new text begin 250,000new text end pounds 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.