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Key: (1) language to be deleted (2) new language

                            CHAPTER 244-S.F.No. 1495 
                  An act relating to agriculture; providing for a 
                  biodiesel fuel mandate; proposing coding for new law 
                  in Minnesota Statutes, chapter 239. 
           Section 1.  [239.77] [BIODIESEL CONTENT MANDATE.] 
           Subdivision 1.  [BIODIESEL FUEL.] "Biodiesel fuel" means a 
        renewable, biodegradable, mono alkyl ester combustible liquid 
        fuel derived from agricultural plant oils or animal fats and 
        that meets American Society For Testing and Materials 
        Specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for 
        Distillate Fuels. 
           Subd. 2.  [MINIMUM CONTENT; EFFECTIVE DATE.] (a) Except as 
        otherwise provided in this section, all diesel fuel sold or 
        offered for sale in Minnesota for use in internal combustion 
        engines must contain at least 2.0 percent biodiesel fuel oil by 
           (b) The mandate in paragraph (a) is effective on and after 
        the date that the conditions in clauses (1) and (2), or in 
        clauses (1) and (3), have been met: 
           (1) thirty or more days have passed since the commissioner 
        of agriculture publishes notice in the State Register that 
        annual capacity in Minnesota for the production of biodiesel 
        fuel oil exceeds 8,000,000 gallons; 
           (2) eighteen months have passed since the commissioner of 
        agriculture publishes notice in the State Register that a 
        federal action on taxes imposed, tax credits, or otherwise, 
        creates a reduction in the price of two cents or more per gallon 
        on taxable fuel that contains at least two percent biodiesel 
        fuel oil and is sold in this state; 
           (3) the date June 30, 2005, has passed. 
           Subd. 3.  [EXCEPTIONS.] (a) The minimum content requirement 
        of subdivision 2 does not apply to fuel used in the following 
           (1) motors located at an electric generating plant 
        regulated by the Nuclear Regulatory Commission; 
           (2) railroad locomotives; and 
           (3) off-road taconite and copper mining equipment and 
           (b) The exemption in paragraph (a), clause (1), expires 30 
        days after the Nuclear Regulatory Commission has approved the 
        use of biodiesel fuel in motors at electric generating plants 
        under its regulation. 
           Sec. 2.  [239.771] [DISTRIBUTOR EXPENSE REIMBURSEMENT.] 
           Subdivision 1.  [ELIGIBILITY.] A distributor that made 
        capital expenditures necessary to adapt or add equipment to 
        blend biodiesel fuel oil under the mandate in section 239.77 may 
        be eligible for partial reimbursement for those expenditures if 
        the mandate is repealed within eight years of the date the 
        mandate is effective. 
           Subd. 2.  [APPLICATION; ELIGIBILITY.] (a) A distributor may 
        apply to the commissioner of agriculture for a reimbursement 
        from money appropriated for this purpose on the following 
        schedule:  If the mandate is repealed within two years of its 
        effective date, the commissioner shall reimburse up to 80 
        percent of expenditures.  The total amount eligible to be 
        reimbursed must decline by ten percent each year after the 
        mandate is effective and must end at 20 percent in the eighth 
           (b) The commissioner must require detailed proof of 
        expenditures made solely to comply with the mandate. 
           Presented to the governor March 13, 2002 
           Became law without the governor's signature March 15, 2002

Official Publication of the State of Minnesota
Revisor of Statutes