SF 3154

as introduced - 89th Legislature (2015 - 2016) Posted on 03/30/2016 04:20pm

A bill for an act
relating to forest resources; establishing a production incentive program for
the use of forest resources in the production of siding; 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.20] SIDING 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 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 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 forestry resources. The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating before July 1, 2017. Eligible facilities include existing companies and
facilities that are adding siding production capacity, or retrofitting existing capacity, as
well as new companies and facilities. Eligible siding production facilities must use at
least ... tons of forestry materials a year.
new text end

new text begin (b) No payments shall be made for siding production that occurs after June 30, 2035,
for those eligible producers under paragraph (a).
new text end

new text begin (c) An eligible producer of siding 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 siding. The amount of the payment for each eligible producer's
annual production is $....... per ton of forest resources used at a specific location for ten
years after the start of production.
new text end

new text begin (b) Total payments under this section to an eligible siding producer in a fiscal
year may not exceed the amount necessary for ... tons of forest resources used. Total
payments under this section to all eligible siding producers in a fiscal year may not exceed
the amount necessary for ... tons used. 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 siding 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 come from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council,
Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has
completed training from the Minnesota logger education program or the equivalent, and
have a forest stewardship plan.
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 siding producer shall file a claim for payment for forest resource utilization during
the preceding three calendar months. An eligible siding producer that files a claim under
this subdivision shall include a statement of the eligible producer's total forest resources
utilized in Minnesota during the quarter covered by the claim. For each claim and statement
of total forest resources filed under this subdivision, the volume of forest resources
utilized 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 sum sufficient to make the payments required by this
section, not to exceed $4,000,000 in a fiscal year, is annually appropriated from the
general fund to the commissioner, and all money appropriated under this subdivision
is available until spent.
new text end