Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 257-H.F.No. 415 
           An act relating to agriculturally derived ethyl 
          alcohol; clarifying eligibility for producer payments; 
          defining terms; amending Minnesota Statutes 1988, 
          section 41A.09, subdivisions 2 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 41A.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITION DEFINITIONS.] For purposes of this 
section the terms defined in this subdivision have the meanings 
given them. 
    (a) "Ethanol" means agriculturally derived fermentation 
ethyl alcohol of a purity of at least 99 percent, determined 
without regard to any added denaturants, denatured in conformity 
with one of the approved methods set forth by the United States 
Department of Treasury, Bureau of Alcohol, Tobacco and Firearms, 
and derived from the following agricultural products:  potatoes, 
cereal, grains, cheese whey, or sugar beets. 
    (b) "Wet alcohol" means agriculturally derived fermentation 
ethyl alcohol having a purity of at least 50 percent but less 
than 99 percent.  
    Sec. 2.  Minnesota Statutes 1988, section 41A.09, 
subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENTS FROM FUND.] The commissioner of revenue 
shall make cash payments from the development fund to producers 
of ethanol or agricultural grade wet alcohol, for use as a motor 
fuel, located in the state.  These payments shall apply only to 
ethanol or wet alcohol fermented in the state.  The amount of 
the payment for each producer's annual production shall be as 
follows: 
    (a) For each gallon of ethanol produced: 
    (1) For the period beginning July 1, 1986, and ending June 
30, 1987, 15 cents per gallon; 
    (2) For the period beginning July 1, 1987, and ending June 
30, 2000, 20 cents per gallon. 
    (b) For each gallon produced of agricultural grade alcohol 
of a purity of at least 50 percent but not more than 90 percent 
and designed to be used in conjunction with diesel fuel in an 
engine's internal combustion process, for the period beginning 
July 1, 1987, and ending June 30, 2000, 11 cents per gallon. For 
each gallon produced of wet alcohol during the period beginning 
July 1, 1989, and ending June 30, 2000, a payment in cents per 
gallon calculated by the formula "alcohol purity in percent 
divided by five," and rounded to the nearest cent per gallon, 
but not less than 11 cents per gallon.  The producer payment for 
wet alcohol under this section may be paid to either the 
original producer of wet alcohol or the secondary processor, at 
the option of the original producer, but not to both. 
    (c) The total payments from the fund to all producers may 
not exceed $200,000 during the period beginning July 1, 1986, 
and ending June 30, 1987, and may not exceed $10,000,000 in any 
fiscal year during the period beginning July 1, 1987, and ending 
June 30, 2000.  Total payments to any producer from the fund in 
any fiscal year may not exceed $3,000,000. 
    By the last day of October, January, April, and July, each 
producer shall file a claim for payment for production during 
the preceding three calendar months.  The volume of production 
must be verified by a certified financial audit performed by an 
independent certified public accountant using generally accepted 
accounting procedures. 
    Payments shall be made November 15, February 15, May 15, 
and August 15.  
    Sec. 3.  [EFFECTIVE DATE.] 
    This act is effective July 1, 1989. 
    Presented to the governor May 23, 1989 
    Signed by the governor May 26, 1989, 4:45 p.m.