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HF 3888

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/15/2016 09:20am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/11/2016
1st Engrossment Posted on 04/15/2016

Current Version - 1st Engrossment

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A bill for an act
relating to agriculture; appropriating money for certain agriculture-related
purposes; modifying various agriculture-related provisions; making clarifying,
technical, and policy changes; providing a tractor rollover pilot grant program;
establishing an agricultural emergency account; amending Minnesota Statutes 2014, sections 17.117, subdivision 11a; 18B.26, subdivision 3; 41A.12, subdivision 2; Minnesota Statutes 2015 Supplement, sections 41A.14; 41A.15, subdivisions 2, 10, by adding subdivisions; 41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18, subdivision 1; 116D.04, subdivision 2a; Laws 2015, First Special Session chapter 4, article 1, sections 2, subdivision 4; 5; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Section 1. new text beginAPPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2016" and "2017" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017.
Appropriations for fiscal year 2016 are effective the day following final enactment.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2016
new text end
new text begin 2017
new text end

Sec. 2. new text beginDEPARTMENT OF AGRICULTURE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 7,883,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Animal Health
new text end

new text begin -0-
new text end
new text begin 2,083,000
new text end

new text begin $1,800,000 the second year is for a grant
to the Board of Regents of the University
of Minnesota to develop, in consultation
with the commissioner of agriculture and
the Board of Animal Health, a software
tool or application through the Veterinary
Diagnostic Laboratory that empowers
veterinarians and producers to understand
the movement of unique pathogen strains in
livestock and poultry production systems,
monitor antibiotic resistance, and implement
effective biosecurity measures that promote
animal health and limit production losses.
This is a onetime appropriation available
until June 30, 2019.
new text end

new text begin $283,000 the second year is for a grant to
the Board of Regents of the University of
Minnesota to maintain and increase animal
disease testing capacity through the purchase
of Veterinary Diagnostic Laboratory
equipment. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Farm Safety
new text end

new text begin -0-
new text end
new text begin 250,000
new text end

new text begin $250,000 the second year is for the tractor
rollover protection pilot program. This is a
onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Agriculture Laboratory and
Emergency Response
new text end

new text begin -0-
new text end
new text begin 5,550,000
new text end

new text begin $2,218,000 the second year is for equipment
and instruments for the Department of
Agriculture laboratory. This is a onetime
appropriation available until June 30, 2022.
new text end

new text begin $3,332,000 the second year is for transfer
to the agricultural emergency account in the
agricultural fund. This is a onetime transfer.
new text end

Sec. 3.

new text begin [17.055] AGRICULTURAL EMERGENCY ACCOUNT;
APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; appropriation. new text end

new text begin An agricultural emergency account
is established in the agricultural fund. Money in the account, including interest, is
appropriated to the commissioner for emergency response and preparedness activities
for agricultural emergencies affecting producers of livestock, poultry, crops, or other
agricultural products. Eligible uses include, but are not limited to, purchasing necessary
equipment and reimbursing costs incurred by local units of government that are not
eligible for reimbursement from other sources.
new text end

new text begin Subd. 2. new text end

new text begin Transfer authorized. new text end

new text begin The commissioner may transfer money in the
account to the Board of Animal Health, other state agencies, or the University of
Minnesota for purposes of subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin No later than February 1 each year, the commissioner
must report activities and expenditures under this section to the legislative committees
and divisions with jurisdiction over agriculture finance.
new text end

Sec. 4.

Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:


Subd. 11a.

Eligible projects.

All projects that remediate or mitigate adverse
environmental impacts are eligible if:

(1) the project is eligible under the allocation agreement and funding sources
designated by the local government unit to finance the project; deleted text beginand
deleted text end

(2) manure management projects remediate or mitigate impacts from facilities with
less than 1,000 animal units as defined in Minnesota Rules, chapter 7020new text begin; and
new text end

new text begin (3) drinking water projects remediate the adverse environmental impacts or presence
of contaminants in private well water and implement best management practices to
achieve the drinking water standards under chapter 103H or contained in Code of Federal
Regulations, title 40, parts 141 and 143, as amended
new text end.

Sec. 5.

new text begin [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grants; eligibility. new text end

new text begin (a) The commissioner must award cost-share
grants to Minnesota farmers who retrofit eligible tractors with eligible rollover protective
structures. Grants are limited to 70 percent of the farmer's documented cost to purchase,
ship, and install an eligible rollover protective structure. The commissioner must increase
the grant award amount over the 70 percent grant limitation requirement if necessary to
limit a farmer's cost per tractor to no more than $500.
new text end

new text begin (b) A rollover protective structure is eligible if it meets or exceeds SAE International
standard J2194.
new text end

new text begin (c) A tractor is eligible if the tractor was built before 1987.
new text end

new text begin Subd. 2. new text end

new text begin Promotion; administration. new text end

new text begin The commissioner may spend up to 20
percent of total program dollars each fiscal year to promote the program to Minnesota
farmers. The commissioner must minimize administrative costs by cooperating with the
New York Center for Agricultural Medicine and Health to administer the grant program.
new text end

new text begin Subd. 3. new text end

new text begin Nonstate funds; appropriation. new text end

new text begin The commissioner must solicit
contributions from nonstate sources to supplement state appropriations for this program.
Funds received under this subdivision are appropriated to the commissioner for purposes
of this section.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2019.
new text end

Sec. 6.

Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:


Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural
pesticide, a registrant shall pay an annual registration application fee for each agricultural
pesticide of $350. The fee is due by December 31 preceding the year for which the
application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
registration application fee for each nonagricultural pesticide of $350. The fee is due
by December 31 preceding the year for which the application for registration is made.
The fee is nonrefundable. deleted text beginThedeleted text endnew text begin If the registrant had annual gross sales of more than
$70,000 for the nonagricultural pesticide in the preceding calendar year, the
new text end registrant deleted text beginof a
nonagricultural pesticide
deleted text end shall pay, in addition to the $350 minimum fee, a fee deleted text beginofdeleted text endnew text begin equal tonew text end
0.5 percent of new text beginthat portion of the new text endannual gross sales deleted text beginof thedeleted text endnew text begin over $70,000. For purposes
of this subdivision, gross sales includes both
new text end nonagricultural pesticide new text beginsold new text endin the state
and deleted text beginthe annual gross sales of thedeleted text end nonagricultural pesticide sold into the state for use in
this state. No new text beginadditional new text endfee is required if the fee due amount based on percent of annual
gross sales of a nonagricultural pesticide is less than $10. The registrant shall secure
sufficient sales information of nonagricultural pesticides distributed into this state from
distributors and dealers, regardless of distributor location, to make a determination. Sales
of nonagricultural pesticides in this state and sales of nonagricultural pesticides for use in
this state by out-of-state distributors are not exempt and must be included in the registrant's
annual report, as required under paragraph (g), and fees shall be paid by the registrant based
upon those reported sales. Sales of nonagricultural pesticides in the state for use outside of
the state are exempt from the gross sales fee in this paragraph if the registrant properly
documents the sale location and distributors. A registrant paying more than the minimum
fee shall pay the balance due by March 1 based on the gross sales of the nonagricultural
pesticide by the registrant for the preceding calendar year. A pesticide determined by the
commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the
state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
license and is responsible for payment of the annual gross sales fee under paragraph (c),
record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
commissioner, after a public hearing, may increase proportionally the pesticide sales and
product registration fees under this chapter by the amount necessary to ensure this level
of revenue is achieved. The authority under this section expires on June 30, 2014. The
commissioner shall report any fee increases under this paragraph 60 days before the fee
change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee must be paid by
the applicant for each pesticide to be registered if the application is a renewal application
that is submitted after December 31.

(g) A registrant must annually report to the commissioner the amount, type and
annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
otherwise distributed in the state. The report shall be filed by March 1 for the previous
year's registration. The commissioner shall specify the form of the report or approve
the method for submittal of the report and may require additional information deemed
necessary to determine the amount and type of nonagricultural pesticide annually
distributed in the state. The information required shall include the brand name, United
States Environmental Protection Agency registration number, and amount of each
nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
the information collected, if made public, shall be reported in a manner which does not
identify a specific brand name in the report.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
report to the commissioner the amount, type, and annual gross sales of each registered
agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
state for use in the state. The report must be filed by January 31 for the previous year's
sales. The commissioner shall specify the form, contents, and approved electronic method
for submittal of the report and may require additional information deemed necessary to
determine the amount and type of agricultural pesticide annually distributed within the
state or into the state. The information required must include the brand name, United States
Environmental Protection Agency registration number, and amount of each agricultural
pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b),
or a registrant under paragraph (d), shall keep accurate records for five years detailing
all distribution or sales transactions into the state or in the state and subject to a fee and
surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner
and must clearly demonstrate proof of payment of all applicable fees and surcharges
for each registered pesticide product sold for use in this state. A person who is located
outside of this state must maintain and make available records required by this subdivision
in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject
to audit under this section to provide information determined by the commissioner to be
necessary to enable the commissioner to perform the audit.

(l) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

Sec. 7.

Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:


Subd. 2.

Activities authorized.

For the purposes of this program, the commissioner
may issue grants, loans, or other forms of financial assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock investment grant
program under section 17.118, deleted text beginbioenergy awards made by the NextGen Energy Board
under section 41A.105,
deleted text end cost-share grants for the installation of biofuel blender pumps, and
financial assistance to support other rural economic infrastructure activities.

Sec. 8.

Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:


41A.14 AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND
TECHNOLOGY TRANSFER GRANT PROGRAM.

Subdivision 1.

Duties; grants.

The agriculture research, education, extension, and
technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural productivity
increases through improved infrastructure, vision, and accountability. The scope and
intent of the grants, to the extent possible, shall provide for deleted text beginadeleted text end long-term base funding
that allows the deleted text beginresearchdeleted text end grantee to continue the functions of the research, education, deleted text beginanddeleted text end
extensionnew text begin, and technology transfernew text end efforts to a practical conclusion. Priority for grants
shall be given to human infrastructure. The commissioner shall provide grants for:

(1) agricultural researchnew text begin, extension,new text end and technology transfer needs deleted text beginand recipients
including agricultural research and extension
deleted text end at the University of Minnesotadeleted text begin, research and
outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
Education Council;
deleted text endnew text begin for use by any of the following:
new text end

new text begin (i) the College of Food, Agricultural and Natural Resource Sciences;
new text end

new text begin (ii) the Minnesota Agricultural Experiment Station;
new text end

new text begin (iii) the University of Minnesota Extension Service;
new text end

new text begin (iv) the University of Minnesota Veterinary School;
new text end

new text begin (v) the Veterinary Diagnostic Laboratory; or
new text end

new text begin (vi) the Stakman-Borlaug Center;
new text end

(2) agriculture rapid response for plant and animal diseases and pests; and

(3) agricultural education including but not limited to the Minnesota Agriculture
Education Leadership Council, farm business management, mentoring programs, graduate
debt forgiveness, and high school programs.

Subd. 2.

Advisory panel.

new text begin(a) new text endIn awarding grants under this section, the
commissioner new text beginand a representative of the College of Food, Agricultural and Natural
Resource Sciences at the University of Minnesota
new text endmust consult with an advisory panel
consisting of the following stakeholders:

deleted text begin (1) a representative of the College of Food, Agricultural and Natural Resource
Sciences at the University of Minnesota;
deleted text end

deleted text begin (2)deleted text endnew text begin (1)new text end a representative of the Minnesota State Colleges and Universities system;

deleted text begin (3)deleted text endnew text begin (2)new text end a representative of the Minnesota Farm Bureau;

deleted text begin (4)deleted text endnew text begin (3)new text end a representative of the Minnesota Farmers Union;

deleted text begin (5)deleted text endnew text begin (4)new text end a person representing agriculture industry statewide;

deleted text begin (6)deleted text endnew text begin (5)new text end a representative of each of the state commodity councils organized under
section 17.54 and the Minnesota Pork Board;

deleted text begin (7)deleted text endnew text begin (6)new text end a person representing an association of primary manufacturers of forest
products;

deleted text begin (8)deleted text endnew text begin (7)new text end a person representing organic or sustainable agriculture; and

deleted text begin (9)deleted text endnew text begin (8)new text end a person representing statewide environment and natural resource
conservation organizations.

new text begin (b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
respective organizations.
new text end

Subd. 3.

Account.

An agriculture research, education, extension, and technology
transfer account is created in the agricultural fund in the state treasury. The account
consists of money received in the form of gifts, grants, reimbursement, or appropriations
from any source for any of the purposes provided in subdivision 1, and any interest or
earnings of the account. Money in the account is appropriated to the commissioner of
agriculture for the purposes under subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 2, is
amended to read:


Subd. 2.

Advanced biofuel.

"Advanced biofuel" deleted text beginhas the meaning givendeleted text endnew text begin means
advanced biofuel as defined
new text end in section 239.051, subdivision 1anew text begin, and biobutanolnew text end.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Biobased content. new text end

new text begin "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 D6866.
new text end

Sec. 11.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


new text begin Subd. 2b. new text end

new text begin Biobased formulated product. new text end

new text begin "Biobased formulated product" means
a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
content percentage of at least ten percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866, or that contains
a biobased chemical constituent that displaces a known hazardous or toxic constituent
previously used in the product formulation.
new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Biobutanol. new text end

new text begin "Biobutanol" means fermentation isobutyl alcohol that is
derived from agricultural products, including potatoes, cereal grains, cheese whey, and
sugar beets; forest products; or other renewable resources, including residue and waste
generated from the production, processing, and marketing of agricultural products, forest
products, and other renewable resources.
new text end

Sec. 13.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


new text begin Subd. 2d. new text end

new text begin Biobutanol facility. new text end

new text begin "Biobutanol facility" means a facility at which
biobutanol is produced.
new text end

Sec. 14.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


new text begin Subd. 9a. new text end

new text begin Quarterly. new text end

new text begin "Quarterly" means any of the following three-month intervals
in a calendar year: January through March, April through June, July through September,
or October through December.
new text end

Sec. 15.

Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with
biobased content deleted text beginas defined in section 41A.105, subdivision 1adeleted text end.

Sec. 16.

Minnesota Statutes 2015 Supplement, 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 begin95,000deleted text endnew text begin 23,750new text end MMbtu of deleted text beginannualdeleted text endnew text begin quarterly
new text endbiofuel 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 begin95,000deleted text endnew text begin 23,750new text end MMbtu deleted text begina yeardeleted text endnew text begin of biofuel quarterlynew text end.

(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.

Sec. 17.

Minnesota Statutes 2015 Supplement, 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 contentdeleted text begin, as defined in section 41A.105,
subdivision 1a, clause (1),
deleted text end 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 begin3,000,000deleted text endnew text begin 750,000new text end pounds of chemicals deleted text beginannuallydeleted text end new text begin quarterlynew text end
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 begin3,000,000deleted text endnew text begin 750,000new text end
pounds deleted text beginper yeardeleted text endnew text begin of renewable chemicals quarterlynew text end. 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. 18.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
amended to read:


Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make
payments to eligible producers of renewable chemicals located in the state. The amount of
the payment for each producer's annual production is $0.03 per pound of sugar-derived
renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each deleted text beginMMbtudeleted text endnew text begin poundnew text end produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in
a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.

(d) For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 41A.18, 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 should be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by 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 deleted text begin1,000deleted text endnew text begin 250new text end MMbtu deleted text beginper yeardeleted text endnew text begin of biomass thermal quarterlynew text end.

(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.

Sec. 20.

Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
is amended to read:


Subd. 2a.

When prepared.

Where there is potential for significant environmental
effects resulting from any major governmental action, the action shall be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement shall be an analytical rather than an encyclopedic
document which describes the proposed action in detail, analyzes its significant
environmental impacts, discusses appropriate alternatives to the proposed action and
their impacts, and explores methods by which adverse environmental impacts of an
action could be mitigated. The environmental impact statement shall also analyze those
economic, employment, and sociological effects that cannot be avoided should the action
be implemented. To ensure its use in the decision-making process, the environmental
impact statement shall be prepared as early as practical in the formulation of an action.

(a) The board shall by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets shall be prepared
as well as categories of actions for which no environmental review is required under this
section. A mandatory environmental assessment worksheet shall not be required for the
expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
biobutanol facility as defined in section deleted text begin41A.105deleted text endnew text begin 41A.15new text end, subdivision deleted text begin1adeleted text endnew text begin 2dnew text end, based on
the capacity of the expanded or converted facility to produce alcohol fuel, but must be
required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
categories of actions for which environmental assessment worksheets must be prepared.
The responsible governmental unit for an ethanol plant or biobutanol facility project for
which an environmental assessment worksheet is prepared shall be the state agency with
the greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility
or plant located outside the seven-county metropolitan area that produces less than
125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
in section deleted text begin41A.105deleted text endnew text begin 41A.15new text end, subdivision deleted text begin1a, clause (1)deleted text endnew text begin 2dnew text end; or a cellulosic biofuel facility.
A facility or plant that only uses a cellulosic feedstock to produce chemical products for
use by another facility as a feedstock shall not be considered a fuel conversion facility as
used in rules adopted under this chapter.

(b) The responsible governmental unit shall promptly publish notice of the
completion of an environmental assessment worksheet by publishing the notice in at least
one newspaper of general circulation in the geographic area where the project is proposed,
by posting the notice on a Web site that has been designated as the official publication site
for publication of proceedings, public notices, and summaries of a political subdivision in
which the project is proposed, or in any other manner determined by the board and shall
provide copies of the environmental assessment worksheet to the board and its member
agencies. Comments on the need for an environmental impact statement may be submitted
to the responsible governmental unit during a 30-day period following publication of the
notice that an environmental assessment worksheet has been completed. The responsible
governmental unit's decision on the need for an environmental impact statement shall be
based on the environmental assessment worksheet and the comments received during the
comment period, and shall be made within 15 days after the close of the comment period.
The board's chair may extend the 15-day period by not more than 15 additional days upon
the request of the responsible governmental unit.

(c) An environmental assessment worksheet shall also be prepared for a proposed
action whenever material evidence accompanying a petition by not less than 100
individuals who reside or own property in the state, submitted before the proposed
project has received final approval by the appropriate governmental units, demonstrates
that, because of the nature or location of a proposed action, there may be potential for
significant environmental effects. Petitions requesting the preparation of an environmental
assessment worksheet shall be submitted to the board. The chair of the board shall
determine the appropriate responsible governmental unit and forward the petition to it.
A decision on the need for an environmental assessment worksheet shall be made by
the responsible governmental unit within 15 days after the petition is received by the
responsible governmental unit. The board's chair may extend the 15-day period by not
more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative
capacity of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by
the proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business
days prior to the Pollution Control Agency or county issuing a feedlot permit for the
animal feedlot facility unless another public meeting for citizen input has been held with
regard to the feedlot facility to be permitted. The exemption in this paragraph is in
addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation
of an environmental assessment worksheet by a responsible governmental unit selected
by the board for any action where environmental review under this section has not been
specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental
impact statement to a discussion of those impacts, which, because of the nature or location
of the project, have the potential for significant environmental effects. The same process
shall be utilized to determine the form, content and level of detail of the statement as well
as the alternatives which are appropriate for consideration in the statement. In addition,
the permits which will be required for the proposed action shall be identified during the
scoping process. Further, the process shall identify those permits for which information
will be developed concurrently with the environmental impact statement. The board
shall provide in its rules for the expeditious completion of the scoping process. The
determinations reached in the process shall be incorporated into the order requiring the
preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review
and between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits
or other actions required for a proposed project shall be developed in conjunction
with the preparation of an environmental impact statement. When an environmental
impact statement is prepared for a project requiring multiple permits for which two or
more agencies' decision processes include either mandatory or discretionary hearings
before a hearing officer prior to the agencies' decision on the permit, the agencies
may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
consolidated hearing process if requested by the proposer. All agencies having jurisdiction
over a permit that is included in the consolidated hearing shall participate. The responsible
governmental unit shall establish appropriate procedures for the consolidated hearing
process, including procedures to ensure that the consolidated hearing process is consistent
with the applicable requirements for each permit regarding the rights and duties of parties to
the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.

(h) An environmental impact statement shall be prepared and its adequacy
determined within 280 days after notice of its preparation unless the time is extended by
consent of the parties or by the governor for good cause. The responsible governmental
unit shall determine the adequacy of an environmental impact statement, unless within 60
days after notice is published that an environmental impact statement will be prepared,
the board chooses to determine the adequacy of an environmental impact statement. If an
environmental impact statement is found to be inadequate, the responsible governmental
unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the
responsible governmental unit a preliminary draft environmental impact statement under
this section on that action for review, modification, and determination of completeness and
adequacy by the responsible governmental unit. A preliminary draft environmental impact
statement prepared by the project proposer and submitted to the responsible governmental
unit shall identify or include as an appendix all studies and other sources of information
used to substantiate the analysis contained in the preliminary draft environmental impact
statement. The responsible governmental unit shall require additional studies, if needed,
and obtain from the project proposer all additional studies and information necessary for
the responsible governmental unit to perform its responsibility to review, modify, and
determine the completeness and adequacy of the environmental impact statement.

Sec. 21.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
is amended to read:


Subd. 4.

Agriculture, Bioenergy, and
Bioproduct Advancement

14,993,000
19,010,000

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3.
The transfer in this paragraph includes
money for plant breeders at the University
of Minnesota for wild rice, potatoes, and
grapes. Of these amounts, at least $600,000
each year is for deleted text beginagriculture rapid responsedeleted text end
new text beginthe Minnesota Agricultural Experiment
Station's Agriculture Rapid Response Fund
new text endunder Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2). Of the amount
appropriated in this paragraph, $1,000,000
each year is for transfer to the Board of
Regents of the University of Minnesota for
research to determine (1) what is causing
avian influenza, (2) why some fowl are more
susceptible, and (3) prevention measures that
can be taken. Of the amount appropriated
in this paragraph, $2,000,000 each year
is for grants to the Minnesota Agriculture
Education Leadership Council to enhance
agricultural education with priority given
to Farm Business Management challenge
grants.new text begin The commissioner shall transfer the
remaining grant funds in this appropriation
each year to the Board of Regents of the
University of Minnesota for purposes of
Minnesota Statutes, section 41A.14.
new text end

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation
for costs incurred to administer the program.
new text beginAny unencumbered balance does not cancel
at the end of the first year and is available for
the second year.
new text end

$10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; developing
urban agriculture; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
loans under Minnesota Statutes, section
41B.056; sustainable agriculture on farm
research and demonstration; development or
expansion of food hubs and other alternative
community-based food distribution systems;
and research on bioenergy, biobased content,
or biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, deleted text begin2019deleted text endnew text begin 2021new text end.

The commissioner may use funds
appropriated for the agricultural growth,
research, and innovation program as provided
in this paragraph. The commissioner may
award grants to owners of Minnesota
facilities producing bioenergy, biobased
content, or a biobased formulated product;
to organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or to certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner
shall make a good-faith effort to select
projects that have merit and, when taken
together, represent a variety of bioenergy
technologies, biomass feedstocks, and
geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at the
request of the commissioner.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $1,000,000 the
first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to preserve and
promote Minnesota agriculture.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $500,000 in
fiscal year 2016 and $1,500,000 in fiscal
year 2017 are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year, the
balance of the appropriation is available
to the commissioner for the agricultural
growth, research, and innovation program.
Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation
is available until June 30, 2017, and the
second year appropriation is available until
June 30, 2018. The commissioner may use
up to 4.5 percent of the appropriation for
administration of the incentive payment
programs.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $250,000
the first year is for grants to communities
to develop or expand food hubs and
other alternative community-based food
distribution systems. Of this amount,
$50,000 is for the commissioner to consult
with existing food hubs, alternative
community-based food distribution systems,
and University of Minnesota Extension
to identify best practices for use by other
Minnesota communities. No later than
December 15, 2015, the commissioner must
report to the legislative committees with
jurisdiction over agriculture and health
regarding the status of emerging alternative
community-based food distribution systems
in the state along with recommendations
to eliminate any barriers to success. new text beginAny
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
new text endThis is a onetime appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable
retail petroleum dispensers to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A
retail petroleum dispenser selling petroleum
for use in spark ignition engines for vehicle
model years after 2000 is eligible for grant
money under this paragraph if the retail
petroleum dispenser has no more than 15
retail petroleum dispensing sites and each
site is located in Minnesota. The grant
money received under this paragraph must
be used for the installation of appropriate
technology that uses fuel dispensing
equipment appropriate for at least one fuel
dispensing site to dispense gasoline that is
blended with 15 percent of agriculturally
derived, denatured ethanol, by volume, and
appropriate technical assistance related to
the installation. A grant award must not
exceed 85 percent of the cost of the technical
assistance and appropriate technology,
including remetering of and retrofits for
retail petroleum dispensers and replacement
of petroleum dispenser projects. The
commissioner may use up to $35,000 of this
appropriation for administrative expenses.
The commissioner shall cooperate with
biofuel stakeholders in the implementation
of the grant program. The commissioner
must report to the legislative committees
with jurisdiction over agriculture policy and
finance by February 1 each year, detailing
the number of grants awarded under this
paragraph and the projected effect of the grant
program on meeting the biofuel replacement
goals under Minnesota Statutes, section
239.7911. These are onetime appropriations.

$25,000 the first year and $25,000 the second
year are for grants to the Southern Minnesota
Initiative Foundation to promote local foods
through an annual event that raises public
awareness of local foods and connects local
food producers and processors with potential
buyers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
read:


Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; new text beginEMERGENCY
PREPAREDNESS;
new text endAPPROPRIATIONS AND TRANSFERS.

(a) deleted text begin$3,619,000deleted text endnew text begin $519,000new text end is appropriated from the general fund in fiscal year 2016 to
the commissioner of agriculture for avian influenza emergency response activities. The
commissioner may use money appropriated under this paragraph to purchase necessary
euthanasia and composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities that are not
eligible for federal reimbursement. This appropriation is available the day following final
enactment until June 30, 2017.

(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
Board of Animal Health for deleted text beginavian influenza emergency response activities. The Board
may use money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment.
deleted text end new text begin any animal disease emergency response or planning activity,
including but not limited to:
new text end

new text begin (1) the retention of staff trained in disease response;
new text end

new text begin (2) costs associated with the relocation and expansion of the Minnesota Poultry
Testing Laboratory;
new text end

new text begin (3) the identification of risk factors for disease transmission; and
new text end

new text begin (4) the implementation of strategies to prevent or reduce the risk of disease
introduction and transmission.
new text end

This appropriation is available the day following final enactment until June 30, deleted text begin2017deleted text end new text begin 2019new text end.

(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of health for avian influenza emergency response activities. This
appropriation is available the day following final enactment until June 30, 2017.

(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This appropriation may also be used to conduct serology sampling,
in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
Chair in Avian Health, from birds within a control zone and outside of a control zone.
This appropriation is available the day following final enactment until June 30, 2017.

(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations
under this paragraph may also be used to support a staff person at the state's agricultural
incident command post in Willmar. This appropriation is available the day following final
enactment until June 30, 2017.

(f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.

(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
section 17, no later than September 30, 2015, the commissioner of management and
budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
subdivision 6
. This amount is available for deleted text beginavian influenza emergency responsedeleted text end new text begineligible
new text endactivities as provided in Laws 2015, chapter 65, article 1, section 18new text begin, as amendednew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23. new text beginTRANSFER REQUIRED.
new text end

new text begin Of the amount appropriated from the general fund to the commissioner of agriculture
for transfer to the rural finance authority revolving loan account in Laws 2015, First Special
Session chapter 4, article 2, section 6, the commissioner of management and budget must
transfer $6,713,000 back to the general fund in fiscal year 2016. This is a onetime transfer.
new text end